Asked by Julian Jones on Jun 19, 2024
Verified
Debt investments held to earn interest income are reported at amortized cost in the statement of financial position.
Amortized Cost
The initial measurement of a financial asset or liability, adjusted for repayments of principal, accumulation of interest, and any loss in value.
Interest Income
Interest income is the revenue earned from deposit accounts or investments through the lending of money or the use of capital.
- Understand reporting and accounting for debt investments.
Verified Answer
PK
Psycho KillerJun 19, 2024
Final Answer :
True
Explanation :
Debt investments held with the intention to earn interest income and not for trading purposes are reported at amortized cost in the statement of financial position, reflecting the adjustment for the amortization of any discount or premium relative to the face value over the life of the investment.
Learning Objectives
- Understand reporting and accounting for debt investments.