Amortised cost

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The amortised cost of a financial asset or financial liability is:

  1. The amount at which it was measured at initial recognition - the "initial amount" - usually cost.
  2. LESS any repayments of principal.
  3. LESS any reduction for impairment or uncollectability.
  4. ADD or LESS the cumulative amortisation of the difference between the initial amount and the final maturity amount.


See also