Held-to-maturity investments are recorded at their cost, which would include broker's commissions.

Held-to-Maturity Investments

Investments in debt securities that a company has the positive intent and ability to hold until maturity.

Broker's Commissions

This term refers to the fees that brokers earn for facilitating transactions or services such as sales of securities, real estate, or insurance policies.

Recorded

The action of entering or documenting information in a formal record or accounting system for future reference or analysis.

Understand the key principles of accounting for investments and the rationale behind using fair value or cost methods.
Contrast the financial accounting methods for trading securities, available-for-sale securities, held-to-maturity investments, and the application of the equity method in accounting.

Verified Answer

Siyabonga XimbaJun 18, 2024

Final Answer :

True

Explanation :

Held-to-maturity investments are recorded at their amortized cost, which includes any transaction costs such as broker's commissions.

Learning Objectives

Understand the key principles of accounting for investments and the rationale behind using fair value or cost methods.
Contrast the financial accounting methods for trading securities, available-for-sale securities, held-to-maturity investments, and the application of the equity method in accounting.

Held-to-maturity investments are recorded at their cost, which would include broker's commissions.

Definitions

Learning Objectives

Learning Objectives

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