Effective interest method - PwC UK
Sep 10, 2015 · the interest revenue recognized for the period using the effective interest method. The gross carrying amount is increased to $859 by the amount of interest revenue recognized of $33. Consequently, the amortized cost is $363 and the loss allowance is $496 ($859 – $400 ÷ 1.1), which is unchanged from the beginning of the period. ................
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