Amortised Cost Calculation using EIR for Bond in Excel

Описание: This video is to help accountants and financial analysts calculate Amortised cost amount for bond using effective interest rate (EIR) in Microsoft Excel (GOAL SEEK).

According to IFRS 9, Financial assets are measured at:
(a) Amortised cost
(b) Fair value
Fair value through P&L (FVTPL)
Fair value through OCI (FVOCI)

For Amortised cost:
A debt instrument is measured at Amortised cost only if it meets both of the following conditions:
(i) the asset is held within a business model whose objective is achieved by both collecting contractual cash flows; and
(ii) the contractual terms of the financial asset meet the SPPI criterion.

Interest income is calculated using the effective interest method and recognised in profit or loss.

Amortised cost instruments is assessed for ECL impairment (outside the scope of this video).

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