Carrying Value

An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance sheet. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. For a company, carrying value is a company's total assets minus intangible assets and liabilities such as debt.

Also known as "book value".

Investopedia Says:
This is different from market value, as it can be higher or lower depending on the circumstances, the asset in question and the accounting practices that affect them. In many cases, the carrying value of an asset and its market value will differ greatly. This is because, in accordance with accounting rules, the assets are held based on original costs. If a company holds land that was purchased 100 years ago, it holds it at the cost paid. Over time, however, this real estate has likely gained considerably in value.

Related Links:
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
Learn what it means to do your homework on a company's performance and reporting practices before investing. Advanced Financial Statement Analysis

Amount shown on an entity's books for assets, liabilities, or owner's equity, net of reductions or offsets such as for accumulated depreciation, allowance for bad debts, and bond discount; also called Book Value. It may refer to the entire firm's excess of total assets over total liabilities.