According to ISAB, Debt investments are accounted either by the amortize cost or by fair value method. To identify the method used there is certain model. Please explain the model and its criteria.
Expert Answer
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 13-Fair Value measurement
Under Amortised costs method, financial instruments are carried at amortised cost. Under amortised cost method, the financial instrument is initially recognised at fair value. For subsequent measurement, interest at market rate is added to
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