Under IFRS No. 9, an investment can be accounted for at amortized cost if:
A) The debt consists of interest and principal, and the investor is holding the debt to collect those cash flows.
B) The investor elects amortized cost.
C) The investor owns between 20% and 50% of outstanding shares.
D) The debt is not in technical default.

Question

Quizplus · Accepted Answer

An investment can be accounted for at amortized cost under IFRS No. 9 if the debt consists of interest and principal, and the investor is holding the debt to collect those cash flows. This is the primary criteria for applying amortized cost under IFRS 9.