Banking

Held-to-Maturity Bond — Premium / Discount Amortization

Monthly amortization of the discount on a government bond held at amortized cost.

Account NameTypeDebit ($)Credit ($)
Investment Securities (Amortized Cost)Asset (+)833.00-
Interest Income (EIR — Bond)Revenue (+)-833.00

💡 Accountant's Note

Bonds held at amortized cost (IFRS 9 AC category) use the EIR method. If purchased at a discount, the carrying value increases toward par value each month, boosting interest income beyond the coupon rate.

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