CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Held-to-maturity securities are reported at their:
A. Historical cost.
B. Amortized cost.
C. Fair value.

User Contributed Comments 3

User Comment
ThePessimist It is not A because if debt is purchased at a premium or discount, that amount is amortized over the life of the bond.
dblueroom For some reason I remembered held-to-maturity investments are reported at cost, which is actual account on the b.s. then you have a separate account for amortization. The combined amount should be the cost basis for calculating realized gain/loss upon sale. So you would only mentioned amortized costs when it comes to valuation. when you say it's recorded at amortized cost, it sounds like it's single account, in fact you have a separate account tracking the amortization.
edseven The book example shows the gain = sales price less carry value and carry value is cost adjusted for the disc/prem
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