1 Cost Method. The approach mandated for held-to-maturity securities; investments are reported at their 'cost with any premium or discount amortize the life of the investment 2. approach. A concept of income where income is limited to transactions related to central ongoing operations; not an acceptable approach for income theory 3. Investments purchased with intent to hold to maturity; usually investment in debt; accounted for by amortized cost method 4. A method for amortizing . premiums and discounts on bonds; the premium or discount is spread uniformly over the life of the bond as an adjustment of interest