Hi,

I am an accounting student. I have a question about fair value method in evaluation of investing in debt securities. I appreciate if you can help me.

I want to know,

1) Do we need to record amortization of discount or premium during security life or its carrying value will automatically reach to face value?

2) What should be recorded during its life, at the maturity date, or when it is sold?

there will be no amortization since they are using fair value method.

the company should remeasure evey year-end to fair value and the diffrence will be recorded in the income statement.