No unrealized gains and losses are recorded when using the amortized cost model.

Question

Quizplus · Accepted Answer

Under the amortized cost model, financial assets are measured at their initial recognition amount minus principal repayments, plus or minus the cumulative amortization of any difference between the initial amount and the maturity amount, and minus any reduction for impairment. Unrealized gains and losses, which represent changes in the fair value of the financial asset not related to impairment or amortization, are not recognized in profit or loss.

No Unrealized Gains and Losses Are Recorded When Using the Amortized