amortized cost
Noun
AE
The amount at which a financial instrument is measured upon initial recognition, equal to its transaction price minus the principal repayments, plus or minus the cumulative amortization of any difference in the amount at initial recognition and its maturity amount using the effective interest rate (EIR) method, net of the estimated uncollectible amount.
Synonym(s):
- [BE]: amortised cost.
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