Carrying value is an accounting measure of value that refers to the value of an asset or company based on the figures in the respective companys balance sheet. It is the original cost of an asset less the accumulated amount of any depreciation, amortization, or asset impairments. The carrying value is often used interchangeably with book value or net book value. The formula for calculating the carrying value of physical assets such as machinery or computer hardware is (original cost - accumulated depreciation) . For intangible assets such as patents, the formula is (original cost - amortization expense) . The carrying value is not necessarily the same as an assets fair value or market value. The carrying value is an accurate measure of the liabilities and assets of the company. The carrying value of an entire business may be divided by the number of shares outstanding to arrive at carrying value per share. However, since there is not necessarily any connection between market value and carrying value, the baseline assertion can be difficult to justify.