Under U.S. GAAP investments are classified into three categories based upon management's intent. IFRS also divides investments into three classifications, but those classifications are based on the company's business model for managing financial assets and the characteristics of the cash flows of the financial asset.

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Under U.S. GAAP, investments are classified as held-to-maturity, available-for-sale, or trading based on management's intent. IFRS classifies investments based on the business model for managing the assets and the cash flow characteristics, leading to classifications such as amortized cost, fair value through other comprehensive income, and fair value through profit or loss.

Under US GAAP Investments Are Classified into Three Categories Based Upon