The Carrying Value of an Asset (or carrying amount) is the book value of an asset as recorded in the statement of financial position of a business entity. For a tangible asset, a fixed asset valuation of the asset is required to establish the fair market value of the asset which is then compared to the carrying value. The carrying amount of an intangible asset is determined by testing the asset for impairment and comparing the value with the fair market value. When the carrying value of an intangible asset is higher than fair market value, the asset is impaired and, as a result, the carrying value is adjusted downward to the fair market value.