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Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Specialist

Amortised cost

Also called: amortized cost

ELI5

Measurement of a financial asset or liability using the effective-interest method, subject to applicable rules.

Used in conversation

“Counsel wants amortised cost clarified before anyone signs.”

Pitch context

You will see “Amortised cost” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 4

Direct term-level sources and supporting source families.