Held to Maturity Investment is debt securities which is kept under control till the time of its maturity date. Please keep in mind that equity securities have no maturity date, so they may not be treated as Held to Maturity Investment. Unlike trading or available for sale securities that are kept at fair value, held to maturity investment is kept at amotized cost. 

Example

ABC holds a bond which has 10 years maturity date, but the company is not a going concern. The requirement to treat an investment held to maturity, it is necessary that the holder must have the intention and ability to hold thie security till maturity date. Here, it is quite clear that such investment may not be kept till maturity and will be sold in the near future. So, it will be reocorded as investment held for trading or available for sale in the balance sheet.

Premium or Discount

HTM (held to maturity)investments can be bought at discount or at premium. In this case, premium or discount amount is amortized over the life of the security. This is done to bring back the carrying value of the investment back to its par value on the maturity date.

Accounting Journal Entries

Unlike held for sale investments, Held to maturity investments are presented on the balance sheet under non-current assets.

Particulars	Debit	Credit
Recording of HTM securities at the time of purchase:
Investment in Bonds Cash Discount received on bonds	xxx	xxx xxx
At the end of each year, the following entry is made: (at amortized cost)
Interest receivable Discount on bonds Interest income	xxx xxx	xxx