gross carrying amount at origination
gross carrying amount at origination
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!
Re: gross carrying amount at origination
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.)
Re: gross carrying amount at origination
examples here might help:
https://ifrscommunity.com/knowledge-bas ... rest-rate/
https://ifrscommunity.com/knowledge-bas ... rest-rate/