It was noted earlier that certain types of financial instruments have a fixed maturity date; the most typical of such instruments are "bonds." The held-to-maturity securities are normally accounted for by the amortized cost method. To elaborate, if an individual wishes to borrow money he or she would typi.y approach a bank .A held to maturity investment is the investment made by a company which it intends to hold till maturity while it has the capacity to honor such intention. Only debt securities can be cl.ified as held to maturity because they have a definite maturity. Equity securities on the other hand have no maturity and hence they cannot .Key Takeaways. Key Points. To find the the amortized acquisition cost the securities are amortized like a mort.e or a bond. All changes in market value are ignored for debt held to maturity. Debt held to maturity is cl.ified as a long-term investment and it is recorded at the market value original cost on the date of .CONTENTS. Paragraph. Numbers. Introduction. 1- 2. Standards of Financial Accounting and Reporting: Scope. 3- 5. Accounting for Certain Investments in Debt and Equity Securities. 6- 18. Held-to-Maturity Securities. 7- 11. Trading Securities and Available-for-Sale Securities. 12. Reporting Changes in Fair Value. 13-14..
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