Carrying Value.

The carrying value of an asset is the value at which it is carried on the balance sheet. For example, if a company buys a machine for $1,000 and the expected life of the machine is 10 years, the carrying value of the machine would be $1,000. The company would depreciate the machine over its expected life, so the carrying value would decrease each year.

What is the difference between carrying amount and recoverable amount?

The carrying amount of an asset is the amount at which it is recorded in the company's balance sheet. The recoverable amount is the amount that the company expects to receive from the sale or other disposal of the asset.

The carrying amount is typically the original purchase price of the asset, plus any accumulated depreciation. The recoverable amount is the carrying amount less any expected costs of disposal.

If the recoverable amount is less than the carrying amount, the asset is said to be impaired and the impairment must be recorded in the financial statements. How do you find the initial carrying value? To find the initial carrying value of an asset, you need to look at the balance sheet for the date when the asset was acquired. The carrying value is typically the cost of the asset, minus any depreciation that has been recorded.

Is book value the same as amortized cost? Book value and amortized cost are not the same thing. Book value is the net worth of a company or the value of its assets minus its liabilities. Amortized cost is the cost of an asset minus the amount of any depreciation that has been taken on that asset.

What is carrying value of debt?

The carrying value of debt is the amount of money that a company owes on its outstanding debt obligations. This figure is typically reported on a company's balance sheet. The carrying value of debt may be different from the original amount of the debt, due to factors such as interest payments and amortization. What is the carrying value of a note payable? The carrying value of a note payable is the outstanding balance of the loan, including any interest that has accrued.