Definicja amortized cost (FIN-FSCM-TRM-TM)

A method used for valuation and position management of bonds.

Valuation is not based on market prices prevailing on the valuation key date, but on the calculated net present values of the relevant securities account position.

If the acquisition value or book value is below par, the system generates a capitalization record which results in a write-up to the calculated net present value.

If the value is above par, the corresponding write-down is made.