Carrying amount là gì

An Overview of Carrying Value & Fair Value

Carrying value & fair value are two different accounting measures used khổng lồ determine the value of a company's assets.quý khách đang xem: Carrying amount là gì

The carrying value, or book value, is an asset value based on the company's balance sheet, which takes the cost of the asmix and subtracts its depreciation over time. The fair value of an asphối is usually determined by the market and agreed upon by a willing buyer và seller, & it can fluctuate often. In other words, the carrying value generally reflects equity, while the fair value reflects the current market price.

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Because the fair value of an asmix can be more volatile than its carrying value or book value, it's possible for big discrepancies to lớn occur between the two measures. The market value can be higher or lower than the carrying value at any time. These differences usually aren't examined until assets are appraised or sold khổng lồ help determine if they're undervalued or overvalued.

Carrying Value

The carrying value of an asset is based on the figures from a company's balance sheet. When a company initially acquires an asset, its carrying value is the same as its original cost. However, this changes over time. To calculate the carrying value or book value of an asmix at any point in time, you must subtract any accumulated depreciation, amortization, or impairment expenses from its original cost.

Example of Carrying Value

Let's say company ABC bought a 3 chiều printing machine lớn thiết kế prototypes of its product. The 3 chiều printing machine costs $50,000 và has a depreciation expense of $3,000 per year over its useful life of 15 years under the straight line basis of calculating depreciation and amortization.

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Fair Value

Different from the carrying value, the fair value of assets và liabilities is calculated on a mark-to-market accounting basis. In other words, the fair value of an asphối is the amount paid in a transaction between participants if it's sold in the open market. A willing buyer và seller have sầu agreed upon this value. Due lớn the changing nature of open markets, however, the fair value of an asmix can fluctuate greatly over time.

Example of Fair Value

Let's say an investment company has long positions in stocks in its portfolio. By having long positions, the company anticipates favorable market conditions, also known as a "bull market." The company is holding onto these stocks with the expectation they will rise in price over time.

The investment company's original cost of these assets was $6 million. However, after two negative sầu gross domestic sản phẩm (GDP) rates, the market experiences a significant downturn. The company's portfolio falls 40% in value, lớn $3.6 million. Therefore, the fair value of the asmix is $3.6 million, or $6 million - ($6 million x 0.40).

Carrying value and fair value are two different accounting measures used to determine the value of a company's assets.The carrying value of an asmix is based on the figures from a company's balance sheet.The fair value of an asmix is the amount paid in a transaction between participants if it's sold in the open market.