Net Carrying Amount

From Open Risk Manual

Definition

Net Carrying Amount, in the context of IFRS 9 [1], is the Amortised Cost of a financial asset adjusted for any Loss Allowance

Formula

The formula for the net carrying amount simply reflects that fact that it is defined as the amortized cost with the loss allowance deduction


\mbox{GCA}_t =  \mbox{AC}_{t} -  \mbox{LA}_{t}

References

  1. IFRS Standard 9, Financial Instruments

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