Tuesday, 13 January 2015

Example of Held for Maturity Financial Assets

Example of Held for Maturity Financial Assets

The assets which are those assets which satisfied the following three conditions
1.      Determinable amount which is to be received
2.      Fixed maturity period
3.      Entity would keep these assets till the maturity.

Example of Held for Maturity Financial asset # 1

ABC & Co has a loan stock of $ 5000. This stock was purchased as on 01 January, 2015 and has a fixed term of 5 years. The interest rate is 10%. The entity will keep this till the maturity.

Solution


This is the example of held for maturity of financial asset because this is kept for long term and it has determinable payment and fixed maturity period i.e. 5 years.

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