The carrying amount is the recorded cost of an asset, net of any accumulated depreciation or accumulated impairment losses. The term also refers to the recorded amount of a liability.
The carrying amount of an asset may not be the same as its current market value. Market value is based on supply and demand, while the carrying amount is a simple calculation based on the gradual depreciation charged against an asset.
The concept also applies to bonds payable, where the carrying amount is the initial recorded liability for bonds payable, minus any discount on bonds payable or plus any premium on bonds payable.
Carrying amount is also called book value.