What should an investment in a debt instrument be classified as when the business model does not include an intent to trade it?

Question

Quizplus · Accepted Answer

If the business model does not include an intent to trade, then the debt instrument should be classified as amortized cost. This means that the investment will be reported on the balance sheet at its cost, adjusted for amortization of any premiums or discounts over the life of the investment. Interest income will also be recognized over the life of the investment. The other options, such as associate or fair value, are not applicable in this scenario.

What Should an Investment in a Debt Instrument Be Classified