Final answer:
Under the Amortized Cost model, investments are measured at historical cost, adjusted for amortization and any impairment losses, not by their fair value. Option C
Step-by-step explanation:
Investments measured under the Amortized Cost model are recorded at their initial cost minus any principal repayments, and are adjusted for any accretion of discount or amortization of a premium on purchase. This method does not involve regular revaluations to fair value. Instead, the investment is carried at its historical cost adjusted for amortization and any impairment losses.
Therefore, the correct answer to how investments are measured under the Amortized Cost model is C. Historical Cost.
The Fair Value through Other Comprehensive Income (FVTOCI), Fair Value through Profit or Loss (FVTPL), and Market Value are different measurement bases and are not applicable to the Amortized Cost model. Option c