Carrying amount
AccountingAlso called: Book carrying amount
The amount at which an asset is stated on the balance sheet after deducting accumulated depreciation, amortisation, impairment or — for an equity-accounted investment — the investor’s share of losses.
In plain terms
For a loss-making associate or joint venture it acts as a floor at zero. Once it is exhausted, further losses stop being recognised, and reported profit improves with nothing having changed.