on 04-21-2016 12:31 PM
Hi Dear,
pls give me brief idea of amoritization , and what will be accounting entries for that ?
Thanks
Hi Sourabh,
Amortization is the distribution of the difference between the acquisition value and the repayment amount over the term.
A new book value is determined for a position on the valuation key date by calculating the net present value on the key date and generating corresponding interest capitalization flows.
check the below links.Hope it will help you.
Example: Premium/Discount for an Interest Rate Instrument - Valuation - SAP Library
Amortization for Money Market Transactions - Valuation - SAP Library
Thanks,
Prasad
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