Carrying Amount/NBV

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Just need some clarification as to whether the net book value and the carrying amount of an assset are simply different terms for same thing. If not, what's the difference?

Thanks.

Chris

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Carrying Amount/NBV

    I have never heard of carrying amount, but would assume that they are the same - after all the NBV is the amount that you are carrying forward....

    Maybe someone will correct me :oops:

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Carrying Amount/NBV

    You are both right, the carrying amount is just another term for Cost less acc' dep'n
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Carrying Amount/NBV

    'Carrying amount' crops up in the DFS textbooks - I thought it was probably just another term for NBV but you never know :)

    Thanks for the clarification.

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Carrying Amount/NBV

    Carrying amount is a definition that international standards use, net book value is definition that UK standards use.

    Unless UK standards use carrying amount now as well, as I haven't looked at them for a few years.

    Here are some more if you're interested!



    Turnover, Revenue

    Operating Profit, Profit from operations

    Profit on ordinary activities before tax, Profit before tax

    Tax on profit on ordinary activities, Income tax expense

    Profit on ordinary activities after tax, Profit for the period

    Appropriation account - No equivalent, but Statement of Equity- used for similar purpose

    Fixed Assets, Non-current assets

    Tangible fixed assets, Property, plant & equipment

    Stock, Inventory

    Debtors, Trade receivables

    Cash/Bank, Cash and cash equivalents

    Creditors: amounts falling due after more than one year, Non-current liabilities


    Debentures, Long-term borrowings

    Creditors: amounts falling due within one year, Current liabilities


    Creditors, Trade receivables

    Capital allowances, Tax depreciation

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