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Former Member
Jul 23, 2018 at 11:08 AM

Amortization on financial instruments

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Hi,

I understand the Basics of amortization, where in we need to distribute the gain/losses over the term of financial instruments, however when we valuate the way system amortizes, taking the values between last amortized date and current date and write up/down, this whole process looks complicated to me, can some explain why we do this.

i thought amortizing means distributes gains/losses in some way

thanks,

Kranthi.