The amount at which an asset is recorded and recognized in the books of an institution. This amount excludes accumulated depreciation (amortization) and accumulated impairment losses, if any.
Carrying amount = asset value – accumulated depreciation – accumulated impairment losses
In the early days of an asset’s life (on acquisition) the carrying amount would quite possibly be equal to its value at acquisition.
For a liability (carrying amount of a liability), it is the amount at which it is recorded in the books of an entity.
