Is Book Value The Same as Carrying Value?

CFA Level II
#1

Small question, y’all. I am looking at the table page 13, Reading 21. On the right hand side, there is a column called Carrying Value. Question: Is Carrying Value the same as Book Value? Thanks

#2

Yes…which is different from market value.

#3

thanks

#4

and is the fair value the same as market value?

#5

well, I believe that market value = fair value = carrying cost +/- unrealized gains or losses, but I can’t seem to get anything right tonight

#6

market value is how much the market would be willing to pay for the same item today… it is not carrying value + / - unrealized gains/losses. your unrealized gains / losses arise because someone puts a price to the item, and then you can identify a gain or a loss depending on how much you carry that item for on your books.