Under both the fair value model and the amortized cost model, investments are adjusted upwards or downwards to reflect their fair value at year end.

Question

Quizplus · Accepted Answer

Under the fair value model, investments are adjusted to reflect their fair value at year end, but under the amortized cost model, investments are carried at their original cost adjusted for amortization, impairments, and in some cases, foreign exchange gains or losses, not their fair value.

Under Both the Fair Value Model and the Amortized Cost