GAAP Debt Security Accounting: Held-to-Maturity
Held-to-Maturity debt securities are securities that are purchased with the intent and ability to be held until maturity. An insurance company electing the Held-to-Maturity classification must hold the securities to full term. In most cases selling a Held-to-Maturity security will result in tainting the entire Held-to-Maturity portfolio, requiring a change in securities’ classification. Held-to-Maturity debt securities are reported as assets on the balance sheet at amortized cost. Additionally, there are specific disclosures required for held to maturity securities.
This OnDemand Learning session will provide an overview of the accounting for Held-to-Maturity debt securities, including example journal entries and financial statement disclosures.
