You are the new accounting intern Best Buddies Inc (BBI), a profitable and established web-hosting service company. On October 1, 2021, BBI purchased $100,000, 3-year, 10% bond from Retail Inc. The effective interest rate is 14%. Interest is payable semi-annually on April 1 and October 1.

While BBI reports under IFRS, its parent company is contemplating to sell it to a private investor. Management is wondering if it continues with the same investment strategy, what the difference in accounting treatment would be under IFRS and ASPE for Bonds such as those from Retail Inc.