A financial asset that does not have a derivative nature, i.e., it does not derive its value from an underlying asset. Examples of non-derivative financial assets include cash and other monetary assets, loans and receivables (owed by others to an entity), investments and securities (stocks and bonds).
A held-to-maturity investment (HTM investment) is a non-derivative financial asset, representing an investment in debt securities whose holder intends and has the ability to hold till maturity. In practice, such investments are also classified as a financial asset carried at amortized cost. In other words, these investments have either fixed or determinable payment patterns and a pre-determined maturity, and for which an entity intends, and is able to hold to maturity. The held to maturity classification does excludes investments that are designed as carried at fair value through profit or loss (FVTPL), as available for sale (AFS), or as loans or receivables.
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