Explain why premiums and discounts on bond investments must be amortized when using the amortized cost model

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Explain why premiums and discounts on bond investments must be amortized when using the amortized cost model and why no amortization occurs when using the fair value through profit or loss model?
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Related Book For  answer-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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