Investments being held-to-maturity must be accounted for using Amortized Cost under IFRS.

Question

Quizplus · Accepted Answer

According to IFRS, investments that are held-to-maturity must be accounted for using the Amortized Cost method, which involves recognizing interest income, amortization of any premium or discount, and the cost of the investment over its expected life. This differs from the fair value accounting method used for investments classified as Available-for-Sale or Held-for-Trading.

Investments Being Held-To-Maturity Must Be Accounted for Using Amortized Cost