Book value
The carrying amount is the figure at which an asset appears on the balance sheet: the acquisition or production cost less all previous depreciation and value adjustments.
Definition
It is not the market value. A fully depreciated vehicle can carry a book value of one franc and fetch several thousand on sale — the difference is a profit of the year of sale and therefore taxable.
Conversely a carrying amount can exceed the market value; a value adjustment is then due. The carrying amount is therefore a computed figure, not a statement about worth.
Where to read it
What the software must be able to do
Fixed asset accounting should show acquisition value, accumulated depreciation and residual value separately per item — and calculate the book gain or loss on sale itself.
Checked Aug 2026
More terms under Bookkeeping and retention: Accrual principle Accrued liabilities Annual accounts Association accounting Balance sheet Balance sheet total Break-even point Business assets Business expenses Cash book Cash flow statement Cash receipts Contribution margin Cost centre Current assets Debit and credit Depreciation Double-entry bookkeeping Duty to keep accounts EBIT EBITDA Equity Equity ratio Financial year Fixed assets Fixed costs Foreign currency General ledger Gross profit Hidden reserves Income statement Inventory count Journal Journal entry Liabilities Liquidity Loss carry-forward Membership dues Net profit Opening balance sheet Overheads Pass-through item Prepaid expenses Provision Record-keeping ordinance Reserves Retained profit Simple accounts Swiss SME chart of accounts Tamper resistance Turnover Value adjustment Variable costs Volunteer-run structure Voucher Year-end closing modules