What is the meaning of corridor amortization?
Question:
What is the meaning of corridor amortization?
Amortization:
Amortization is the practise of repaying a debt in periodic, pre-determined payments that include both principle and interest. It refers to debt or mortgages, but it is also used to describe the process of regularly reducing the valuation of a company.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerWhen the cumulative OCI (G/L) balance becomes too big, corridor amortisation occurs. When the gain or loss surpasses the arbitrarily chosen FASB...
See full answer below.
Learn more about this topic:
from
Chapter 6 / Lesson 6Learn about interest-only, amortization, and pure discount loans. Study definitions and examples of each type of loan, and identify their pros and cons.