alleryStart learning →A debt asset passes SPPI and is held to collect contractual cash flows without expected sale. Its category?
AAmortized cost basis
BFair value through OCI
CFair value through P&L
DCost less impairment
Answer & Solution
Correct answer: A. Amortized cost basis
A hold-to-collect business model with SPPI cash flows leads to amortized cost measurement.
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