Difference between revisions of "Gross Carrying Amount"
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Definition
Gross Carrying Amount, in the context of IFRS 9 [1], is the Amortised Cost of a financial asset, before adjusting for any Loss Allowance
Formula
Expressed as a derived measure, the formula for the gross carrying amount simply reflects the fact that it is defined as the amortized cost without the loss allowance deduction
In terms of cashflows, given a set of expected cashflows (with index running from 1 to n) and a set of discount factors D calculated using the compound Effective Interest Rate over the expected life T of a financial asset, the GCA is obtained as follows:
where the discount factor for period (i) is given by
See Also
References
- ↑ IFRS Standard 9, Financial Instruments