Amortised Cost. Why is the finance cost different from cash paid. IFRS 9 Financial Instruments

ACCA Tom Clendon's SBR podcast - A podcast by Tom Clendon SBR online lecturer

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So lets keep it simple. Let me make sure you all understand why the finance cost on a financial liability will not be the same as the interest paid! The principle of accounting for liabilities at amortised cost goes to the heart of IFRS 9 Financial Instruments. Short and sweet!