The amount assigned to an asset (asset account) that is subject to depreciation since its acquirement and over the course of its useful life.Typically, it is the asset’s historical cost (original cost) or other measurement value at which the asset is recorded in the financial statements of an entity, less its estimated residual value.

The depreciable amount is the amount on which depreciation of an asset is computed:

Depreciable amount = capitalized costs – residual value

The cost of the asset less all related depreciation written off (to date) (i.e., accumulated depreciation) is known as the carrying value of the asset.