Page 174 - SBR Integrated Workbook STUDENT S18-J19
P. 174
Chapter 12
Example 6
Measuring debt investments
Konsult purchases interest-bearing financial assets. It regularly holds these
financial assets until maturity. However, to maximise returns and to minimise
costs, Konsult occasionally sells its financial assets to invest in those with
higher yields or whose duration are a better match for its liabilities. Konsult
only invests in interest-bearing financial assets that adequately compensate
for credit risk and the time value of money.
What measurement category should Konsult use for its financial assets?
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