Financial assets held to collect contractual cash flows that consist solely of principal and interest (for example trade receivables and loans) are measured at amortised cost. Financial liabilities such as bank loans are also generally measured using this method.
Source: TFRS 9
Related terms
Financial instruments (TFRS 9)The standard governing the classification, measurement and impairment of financial assets and liabilities, and hedge accounting.Expected credit lossCredit losses on financial assets that are estimated, taking forward-looking information into account, and provided for in advance.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.Business combinationA transaction or event in which an acquirer obtains control of one or more businesses.
Last updated: October 22, 2026 · This definition is for general information only.