Financial Asset

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March 1, 2019 at 2:37 pm #506999
Ema
Member
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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
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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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