The amount at which a liability is recorded in the books of an entity. It appears in the statement of financial position at the end of the period on the left side (liability and owners’ equity/ sources of funds). At initial recognition, a liability is recorded at historical cost (HC). This amount is adjusted over time to reflect the best estimate of the liability given a number of factors including repayment, redemption, relief, etc.
It is also referred to as a carrying value of a liability.
