gross carrying amount at origination

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Adrian
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Joined: 19 Jan 2023, 18:52

gross carrying amount at origination

Post by Adrian »

Hello, I am relatively new to IFRS 9 and accounting. I know that the effective interest rate for IFRS 9 is obtained as the interest rate that perfectly discounts future estimated cash flows to the gross carrying amount at origination. However, how is the gross carrying amount at origination computed? An example would help. Thanks!
JRSB
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Re: gross carrying amount at origination

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DJP
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Re: gross carrying amount at origination

Post by DJP »

The carrying amount of the financial liability at origination should be the proceeds received less transaction costs. (If an asset, then its the amount invested plus transaction costs.)
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