Effective interest method: Difference between revisions
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''Financial reporting''. | |||
In relation to a financial asset or financial liability, the allocation of the difference between the initial cost and the final maturity amount using the effective interest rate. | In relation to a financial asset or financial liability, the allocation of the difference between the initial cost and the final maturity amount using the effective interest rate. | ||
Revision as of 20:17, 20 June 2016
Financial reporting.
In relation to a financial asset or financial liability, the allocation of the difference between the initial cost and the final maturity amount using the effective interest rate.
Also known as the amortised cost method.
