For a company that prepares its financial results in accordance with IFRS, a held to maturity bond investment must use the effective rate interest method.

Question

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According to IFRS, a held to maturity bond investment must use the effective interest rate method to calculate interest expense and amortization of the bond premium or discount. This method recognizes a constant periodic interest rate that equates the initial investment with the expected cash flows of the bond until its maturity date.

For a Company That Prepares Its Financial Results in Accordance