Short-term investments in bonds are accounted for using the fair value through profit or loss model.

Question

Quizplus · Accepted Answer

Short-term investments in bonds are often accounted for using the fair value through profit or loss model, especially if they are held for trading purposes or designated at fair value through profit or loss at inception. This method involves recognizing changes in fair value in the profit or loss for the period.

Short-Term Investments in Bonds Are Accounted for Using the Fair