Evaluating an instrument on contractual yield basis

Narayanan Balakrishnan (Chartered Accountant) (98 Points)

28 July 2009  

A financial instrument should be evaluated on the basis of its contractual yield in addition to it having basic loan features, if it is to be carried at amortised cost. Do you think the implementation guidance to the exposure draft provides enough guidance on this aspect? I feel the implementation guidance is vague on this.