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financial instruments

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › financial instruments

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 31, 2019 at 7:23 pm #543980
    mehazia
    Participant
    • Topics: 54
    • Replies: 6
    • ☆☆

    sir,
    In which case of the amortised cost calculation would we not calculate interest like the follows
    amt * effective interest – cash received…
    and what was the formula for that case also
    I know the issue but can’t seem to recall.
    sorry..

    September 1, 2019 at 11:53 am #544051
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7217
    • ☆☆☆☆☆

    Hi,

    Amortised cost is applied to financial assets that meet the business model and contractual cash flow test. It is applied to financial liabilities that are not held at fair value.

    Thanks

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