Carrying amount意思

"Carrying amount" is an accounting term that refers to the book value of an asset on a company's balance sheet. It is the amount at which the asset is being carried, or recorded, on the balance sheet. The carrying amount is typically equal to the original cost of the asset minus any accumulated depreciation or amortization.

For example, if a company purchases a piece of equipment for $10,000 and depreciates it over a period of five years using the straight-line method, after two years the carrying amount of the equipment on the balance sheet would be $10,000 - ($10,000 / 5) * 2 = $6,000.

The carrying amount is used to determine the amount of depreciation or amortization to be recognized in each accounting period, and it is also used to calculate the net book value of the asset, which is the carrying amount minus any accumulated impairment losses.