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I have been doing exercised related to IAS 39 and have a question in this regard. As per the amortised cost method one has to discount the interest payments and the redemption value with the effective rate of interest and subsequently unwind the discount. However in one question the interest payments are and the redemption value are not discounted. The question says that this is a held-to-maturity asset that is to be measured at am-mortised cost. I wanted to know that why did we not discount the values as is done normally.
Thank You and Warm Regards
Do you happen to know the exam reference for this particular question?
I ask because the answers to old exam questions are not amended for each successive alteration in the standard
So whereas the accounting treatment for an old held-to-maturity instrument may have been as per the answer to which you refer, the revised IAS may specify a different treatment but the answer has not reflected this change
Maybe?
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