Amortised cost: Difference between revisions
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The amortised cost of a financial asset or financial liability is: | The amortised cost of a financial asset or financial liability is: | ||
#The amount at which it was measured at initial recognition - the "initial amount" - usually cost. | |||
#LESS any repayments of principal. | |||
#LESS any reduction for impairment or uncollectability. | |||
#ADD or LESS the cumulative amortisation of the difference between the initial amount and the final maturity amount. | |||
== See also == | == See also == | ||
Revision as of 10:07, 11 May 2016
The amortised cost of a financial asset or financial liability is:
- The amount at which it was measured at initial recognition - the "initial amount" - usually cost.
- LESS any repayments of principal.
- LESS any reduction for impairment or uncollectability.
- ADD or LESS the cumulative amortisation of the difference between the initial amount and the final maturity amount.
