US GAAP ASC 360
Authoritative Source
Book Value (Carrying Value)
Net historical cost of an asset recorded on the balance sheet after accumulated depreciation.
Detailed Definition & General Ledger Context
Book Value (Carrying Value) is governed by US GAAP ASC 360 in general ledger financial reporting and fixed asset sub-ledgers. Maintaining accurate records of Book Value (Carrying Value) is vital for audit compliance, asset balance verification, and tax schedule reconciliation.
Mathematical Standard & Equation
Net Book Value = Historical Acquisition Cost - Accumulated Depreciation
General Ledger Journal Entry Standard
Debit: Fixed Assets Expense Account
Credit: Fixed Assets Contra-Asset / Payable Liability
Credit: Fixed Assets Contra-Asset / Payable Liability
Common Operational Pitfalls
- Failing to reconcile fixed asset sub-ledgers with the general ledger trial balance monthly.
- Conflating IRS MACRS tax depreciation tables with GAAP straight-line financial reporting.
- Misclassifying lease obligations under ASC 842 capitalization standards.
Used in these R2R Calculators
Source: https://www.fasb.org/ ↗