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- Title
Claves para valorar a coste amortizado.
- Authors
Díaz, José Morales; Bailén, Luis Duro
- Abstract
Amortised cost is one of the most important valuation methods used for the subsequent measurement of financial instruments both under IFRS and under Spanish GAAP. In some cases, its practical application is simple and the majority of entities are capable of using it (for example, when measuring fixed rate loans). Nevertheless, in other cases (variable rate loans, instruments with prepayment options, foreign currency instruments, etc) there is a higher level of complexity and even diversity in practice. Amortised cost method is performed in three main steps: estimation of future instrument's cash flows, calculation of the effective interest rate of the operation and determination of the amortised cost. Two of its clues are: the estimation of future cash flows and how to account for changes in those estimations.
- Subjects
AMORTIZATION; VALUATION; FINANCIAL instruments; ACCOUNTING standards; LOANS; FOREIGN exchange; CASH flow; INTEREST rates; COST
- Publication
Partida Doble, 2009, Vol 20, Issue 214, p30
- ISSN
1133-7869
- Publication type
Article