Carrying Amount

Definition: Carrying Amount (also called Book Value or Net Book Value) is the value at which an asset or liability is reported on the balance sheet, after all …

Carrying Amount (also called Book Value or Net Book Value) is the value at which an asset or liability is reported on the balance sheet, after all valuation adjustments. For a depreciable asset, Carrying Amount = Cost − Accumulated Depreciation − Accumulated Impairment. For a bond payable, Carrying Amount = Face Value − Unamortized Discount + Unamortized Premium. Under the effective interest method, periodic interest expense is computed as Carrying Amount × Market Rate.