It stands for held-to-maturity financial assets; a financial asset, other than loans and accounts receivable (A/Rs), with a fixed maturity and determined or determinable payments, that an entity plans, and has a positive intention and ability to keep on its books to maturity (i.e., hold to maturity date). By nature, held-to-maturity assets/ investments are non-derivative financial assets that will held to maturity, other than those that it designates upon initial recognition as at fair value through profit or loss (FVTPL), those that is designates as available for sale (AFS); and those that are normally classified as loans and receivables.

Upon initial recognition, held-to-maturity financial assets are measured at cost, which is assumed to be fair value. This value  is based on the original transaction cost or market value of comparable financial assets. In other words, these assets are recognized at fair value in addition to any directly attributable transaction costs.

After initial recognition, held-to-maturity financial assets are measured at amortized cost using the effective interest method. Interest income related to held-to-maturity assets are accounted under income statement.