What does carrying amount mean on the CPA exam?
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Carrying amount. What an asset or liability is currently shown at on the balance sheet: its original amount adjusted for depreciation, amortization, impairment or accrual. Also called book value.
Defined against ASC 360-10-20.
Which CPA exam sections use carrying amount?
Carrying amount appears in 2 CPA exam sections: BAR, FAR.
Other terms defined against ASC 360-10
- held for sale: A classification for a component the entity is actively marketing and expects to sell within a year.
- impairment: Writing an asset down because its carrying amount can no longer be recovered.
Other names for carrying amount
carrying value, book value
Related terms
- equity method: Used when the investor can exercise significant influence, presumed at 20% or more of the voting stock.
- reacquisition price: What it costs to retire debt early, including any call premium.
- at-risk amount: How much a taxpayer could actually lose in an activity: cash and property contributed, plus debt they are personally liable for.
- balance sheet: A snapshot at one date of what the entity owns, what it owes, and the owners' residual.
- Type 1 subsequent event: A recognized subsequent event: it gives evidence about a condition that already existed at the balance sheet date, so the statements are adjusted.
- Type 2 subsequent event: A nonrecognized subsequent event: the condition came into existence after the balance sheet date, so it is disclosed and never adjusted.