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.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16