What Is a Carrying Amount?
Book balance refers to the actual book balance of an account, and it is not necessary to deduct allowance items (such as accumulated depreciation and accumulated amortization) related to the account.
Book balance
discuss
- Chinese name
- Book balance
- Foreign name
- Book Balance
- Definition
- Refers to the actual book balance of an account
- Claim
- Less provision for depreciation and impairment
- Book balance refers to the actual book balance of an account, and it is not necessary to deduct allowance items (such as accumulated depreciation and accumulated amortization) related to the account.
- The book value is the amount after deducting the depreciation (or amortization) and impairment provision; the book balance is the amount of the respective account balance. Is the actual amount on the book, the original value on the accounting statement.
- the difference
- Difference between book balance, book value and book value
- For fixed assets :
- Book balance = original book value of fixed assets
- Net book value = original price of fixed assets-accrued accumulated depreciation
- Book value = Original price of fixed assets-Accumulated depreciation accrued-Provision for impairment
- For intangible assets:
- Book balance = original book value of intangible assets
- Net book value = original price of intangible assets-accrued accumulated amortization
- Book value = original price of intangible assets-accrued accumulated amortization-provision for impairment
- Investment real estate for subsequent measurement by cost model:
- Book balance = original book price
- Net book value = Book balance-Cumulative depreciation (amortization)
- Book value = Book balance-Cumulative depreciation (amortization)-Provision for impairment
- Other assets:
- Only the concepts of book value and book balance (account balance) are involved. The book value is the amount of the book balance minus the provision for impairment; the book balance is the amount of the respective account balance.
- The book balance of transaction finance and investment real estate measured at fair value = book value.
- Therefore, when an enterprise depreciates fixed assets or amortizes intangible assets, and withdraws impairment provisions on fixed assets and intangible assets, it will not affect the book balance of fixed assets and intangible assets, but only affect their book value.