Held to maturity securities are investment in debt securities that a corporation intends to and also has the ability to retain till maturity. A very good example of a held to maturity investment security is when a corporation purchases a bond. If a corporation intends to hold the debt security for a period of time, however sell before maturity it would be classified as an available for sale security. Held to maturity securities are reported as either current assets or non current assets, dependent upon their maturity date.
Example:
Adequate Disclosure purchases a bond for $105,000, which it expects to hold till the end of maturity. It also purchases trading securities for $50,000, which it expects to sell within one year. How much is classified as held to maturities?
Answer: The bond that is worth $105,000 which is classified as held to maturities, since it expects to hold till the end of maturity of the bond.