CUNA Certified Credit Union Internal Auditor (CCUIA) Practice Test 2026 - Free CCUIA Practice Questions and Study Guide

Held-to-maturity securities are recorded at amortized cost, which represents the purchase price adjusted for any premiums or discounts over the life of the security. This accounting treatment reflects the intent of the institution to hold these securities until maturity, as opposed to actively trading them. The amortized cost method provides a more accurate picture of the value of these investments over time by taking into account the changes in the carrying amount resulting from amortization of premiums or discounts.

In contrast, market value would fluctuate based on current trading prices, face value only does not account for any premium or discount adjustments, and historical cost would typically not include these necessary adjustments over time. Therefore, amortized value aligns with the financial principle that best represents the investment's valuation strategy for held-to-maturity securities.