The amount at which an asset is recognized after deducting any accumulated depreciation (for physical assets) / amortization (for financial assets), and related, accumulated impairment losses, since it was acquired and recognized in the books of a business (firm).

Carrying amount = original value of asset – accumulated depreciation – impairment losses

An asset is said to be impaired if its carrying amount exceeds its recoverable amount (which is, by definition, the higher of the fair value less costs to sell and the value in use).

For liability, it is also the recorded amount of a liability.

The carrying amount appears in the statement of financial position at the end of the period: on the left side (asset side/ application of funds) for an asset, and on the left side (liability and owners’ equity/ sources of funds) for a liability.

It is also known as a carrying value or book value.