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Financial Asset

This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.

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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: 7163
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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