Amortized cost is that accumulated portion of the recorded cost of a fixed asset that has been charged to expense through either depreciation or amortization. Depreciation is used to ratably reduce the cost of a tangible fixed asset, and amortization is used to ratably reduce the cost of an intangible fixed asset.

What is the difference between cost and amortized cost?

Cost accounting assumes that a money market instrument purchased upon issuance and held until maturity should be priced at cost. Amortized cost accounting assumes that a money market instrument, acquired after issuance and held until maturity, should be priced at its acquisition cost.

What is an Amortised cost?

IAS 39 currently defines amortised cost as "the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount and ...