Amortised cost of a financial asset or financial liability

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Amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured on initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted or any expected credit loss allowance.

Article Sources

This information on ‘risk premium’ was extracted from KCB Group Plc Integrated Report and Financial Statement 2020

 

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