18 May 2023
Why don't we fair value as per amortized cost method? (As the fixed deposit is a financial asset satisfying amortized cost method business model)
18 May 2023
As its just investment, having fixed rate of interest, which gets capitalized on quarterly basis. Other than that, it does not have any market value.
18 May 2023
Thank you for your reply Sir! But my doubt is, Then why do refundable lease (rent) deposits are fair valued? Aren't lease deposits and fixed deposits having same characteristics as you mentioned above?
18 May 2023
A security deposit is a set amount of money paid at the start of renting a place. This sum of money is held by the landlord throughout the rental agreement or lease. It pays for any damage the tenant caused in the unit until the end of the lease period. So, thee is no guarantee of the same amount being returned.
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