Valuation

Carrying Value

Definition

What is Carrying Value?

The amount at which an asset or liability appears in financial statements.

Example in practice

A machine's carrying value falls as depreciation accumulates.

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The price at which an asset could trade in the market at a given time.

An estimate of an asset's underlying economic worth based on expected cash flows, assets, or earning power.

An estimate of an asset's appropriate value under specified assumptions or accounting standards.

Present value of expected cash inflows minus present value of expected cash outflows.

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