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Financial instruments measurement

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Financial instruments measurement

Hello,

I have a question concerning financial instruments. Entity has AFS with 5 year maturity, after 2years market rate for the similar instrument (with 5 years maturity) increased by 4percent. So I have to change the effective rate. Should I have to use 5 or 3 years maturity instrument market rate ?

Waiting for a prompt reply.
Thank you.

November 4th 2015 AN ACCA USER 600 Points

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