Carrying amount
Carrying amount is the amount at which an asset or liability is recognised in the statement of financial position. Its calculation depends on the item and the applicable measurement basis. Under the cost model, property, plant and equipment is shown at cost less accumulated depreciation and impairment losses. Inventory, receivables and revalued assets have different measurement adjustments.
Worked example
A machine costing $50,000 with accumulated depreciation of $18,000 and impairment of $2,000 has a carrying amount of $30,000.
Common mistake
Do not define every carrying amount as historical cost less depreciation: many assets are not depreciated and some are remeasured.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Book value, Net book value, Carrying value