Suppose the amortized carrying cost of a bond is 297,000 for FY dec’11 and the next year’s (dec’12) is 293,865.
If you sell the bond on 1 jan’12 which value would you use to calculate the gain/loss with?
your bond’s carrying cost as of that day - 297000. I believe.
That’s what they have taken too.
Bought at $300,000 on 1 Jan, 2011.
Amortized carrying cost from 1 Jan 2011 to 31 Dec 2011 is $297,000.
On which date would the carrying cost change to $293,865, if that’s the amortized cost in year two?
If you were valuing the Bond for Sale after the $293,865 Carrying value was attained (I believe it is after Dec 2012)