What is the meaning of corridor amortization?


What is the meaning of corridor 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.

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When the cumulative OCI (G/L) balance becomes too big, corridor amortisation occurs. When the gain or loss surpasses the arbitrarily chosen FASB...

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Loan Types: Pure Discount, Interest-Only & Amortization


Chapter 6 / Lesson 6

Learn about interest-only, amortization, and pure discount loans. Study definitions and examples of each type of loan, and identify their pros and cons.

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