Carrying amount

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Meekha (Querist)
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28 May 2009 What is this Carrying amount? Where and all is this term applicable and used? How is it useful and for what? Can any one explain me everything relating to this carrying amount please? Is there something called carrying cost? Is it different from carrying amount? Please help me.

Abhishek Baheti

Abhishek Baheti (Expert)
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28 May 2009 Carrying amount is used in AS 28. It simply means the value of your assets- depreciation. AS 28 says when value in use goes down from carrying amount then difference should be written off as impairment loss.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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29 May 2009 The term carrying amount is often used in place of book value. The carrying amount refers to the amounts that the company has on its books for an asset or a liability. For example, the carrying amount of a company’s truck is the cost of the truck minus the accumulated depreciation on the truck.

Carrying amount is the amount at which an asset is recognised in the balance sheet after deducting any accumulated depreciatoin and accumulated impairment losses thereon

Meekha

Meekha (Querist)
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29 May 2009 Thank you Sir. But what is "Value in use"? Is it the present value of the goods or something else? Please help.

Meekha

Meekha (Querist)
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29 May 2009 Does carrying cost and carrying amount mean the same?

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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29 May 2009 Carrying cost

The continuing cost of owning, maintaining, and holding inventory. Warehouse, insurance costs, financing costs, pilferage, obsolescence, and spoilage are the major components of this cost. In CaseView, carrying costs (if relevant to the case under consideration ) could be entered as costs on the input screen for non-capital expenses. On the other hand, carrying cost savings or costs avoided could be entered directly as benefits/gains.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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29 May 2009 In marketing, carrying cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related to perishibility, shrinkage and insurance.

Meekha

Meekha (Querist)
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30 May 2009 Thank you Madam

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