What is carrying amount of PPE?

The carrying amount of Property, Plant, and Equipment (PPE) refers to the value at which these assets are recognized on the balance sheet. It is calculated by taking the original cost of the asset, subtracting accumulated depreciation and any impairment losses. This figure reflects the asset's current value in the company’s financial records, rather than its market value. It is important for understanding the financial health and investment in physical assets of a business.