According to ISAB, Debt investments are accounted either by theamortize cost or by fair...

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Accounting

According to ISAB, Debt investments are accounted either by theamortize cost or by fair value method. To identify the method usedthere is certain model. Please explain the model and itscriteria.

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Fair value method for measurement of financial instruments is where the financial instruments are carried at fair value Fair value is determined using the principles outlined in IFRS 13Fair Value measurement Under Amortised costs method financial instruments are carried at amortised cost Under amortised cost method the financial instrument is initially recognised See Answer

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In: AccountingAccording to ISAB, Debt investments are accounted either by theamortize cost or by fair value...According to ISAB, Debt investments are accounted either by theamortize cost or by fair value method. To identify the method usedthere is certain model. Please explain the model and itscriteria.