A measure of carrying amount that reflects the amount at which an asset (or broadly, an item) is currently recognized and carried on an entity’s financial statements. This amount  adjusts for 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), and until the current moment (to date).

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

An asset is said to be impaired if its carrying value 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 currently recorded amount of a liability.

The carrying value 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.