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Your company has invested in held to maturity securities. What have you bought (more common description)?...

Your company has invested in held to maturity securities. What have you bought (more common description)? What is the accounting treatment as the investment increases/decreases in value.?

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Held to maturity securities are those investment that the company intends to hold till the maturity of those securities. Generally companies treat bonds as held to maturity. Since shares in a company do not have a maturity date , therefore they do not qualify as held to maturity securities.

It is pertinent here to note that unlike held for trading securities any temporary changes the value of the held to maturities securities do not appear in financial statements. Held to maturities securities appear on the balance sheet at amortized cost I.e. initial acquisition cost + any additional cost incurred till date.

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