Amortised Cost Method

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..... available, then Amount received or given of Financial Instrument is considered at Fair Value. If transaction is on the basis of the Off Market Terms that means market rate on similar instrument has to consider then Fair Value to be calculated by discounting future cash flows using market interest rate. At Each reporting date, financial instrument has to measure at amortised cost, and s .....

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..... To Financial Liability XXX 2. At Each Year end 2. At Each Year End Financial Asset A/c Dr. XXX Finance Cost (P L) XXX To Finance Income (P L) XXX To Financial Liability X .....

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..... added to Fair Value of financial asset at initial recognition. It is Subtracted from fair value of financial liability of initial recognition. If transaction is done at Off Market terms, then their will be difference between amount received or paid at beginning Fair value calculated at beginning, then such difference to be recorded. - Manuals - Ready reckoner - Law and practic .....

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