What does the hotel cash test mean?

The cash flow test is simply understood as a financial asset whose main purpose is to collect fixed interest.

The cash test is measured in amortized cost, measured at fair value and its changes are included in other comprehensive income (both must pass the contract cash flow test), and measured at fair value and its changes are included in the current profit and loss (those that fail the test are directly included in the principal, and those that fail to meet the subsequent conditions are also included in the principal).