ECB working paper (forthcoming); Popov, A., and G. Udell, 2010. Cross-border banking and the international transmission of financial distress during the crisis of 2007–2008. ECB working paper (forthcoming); Puri, Rocholl, and Steffen, 2010. The impact of the US financial crisis on global retail lending. Duke University working paper.
Amortized cost simply is the amount paid to acquire a financial asset, adjusted for any unaccreted discount or unamortized premium. All entities calculate amortized cost using the same formula. Of course, amortized cost is not a panacea. Entities purchase assets at different times and the timing of expected cash flow changes can result in different measurements for the same financial instruments.