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Financial Asset

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial Asset

Viewing 2 posts - 1 through 2 (of 2 total)
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  • March 1, 2019 at 2:37 pm #506999
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    Sir,

    Can you please explain the concept behind “Financial Asset can be carried at amortised cost instead of Fair value if an accounting mismatch can be shown.”

    Thank you

    Regards,

    March 1, 2019 at 9:06 pm #507065
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7141
    • ☆☆☆☆☆

    Hi,

    Yes, if there is an equivalent similar liability that is carried at amortised cost then the financial asset is held at amortised cost too. So examples would be in the banking industry with money borrowed (FL) and lent (FA).

    Thanks

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