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Why are held-to-maturity securities reported at amortized cost rather than fair value? Because companies are required to do so by law and by industry practice
Why are held-to-maturity securities reported at amortized cost rather than fair value?
Because companies are required to do so by law and by industry practice
Because doing so increases the volatility of reported earnings and reported capital
Because fair value is not a relevant means for evaluating cash flows associated with the securities
Because the acquisition cost is what is important, not the value of the security, and this is measured by amortized costs
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