What is the initial and subsequent measurement of financial asset?

What is the initial and subsequent measurement of financial asset?

A financial asset or financial liability is measured initially at fair value. Subsequent measurement depends on the category of financial instrument. Some categories are measured at amortised cost, and some at fair value.

What is initial and subsequent measurement?

Initial and subsequent measurement of assets and liabilities; How the relevant measurement method for a particular asset or liability would depend on the way that the value of the asset would be realised or the obligation that creates the liability would be fulfilled; and.

What is the initial measurement of a financial asset?

fair value
Under IFRS 9, a financial asset is initially measured at fair value plus transaction costs, unless it is carried at fair value through profit or loss, in which case transaction costs are immediately expensed.

When did IAS 39 financial instruments come out?

In April 2001 the International Accounting Standards Board (Board) adopted IAS 39 Financial Instruments: Recognition and Measurement, which had originally been issued by the International Accounting Standards Committee (IASC) in March 1999.

Is there an implementation guidance section in IAS 39?

The revised IAS 39 also incorporated an Implementation Guidance section, which replaced a series of Questions & Answers that had been developed by the IAS 39 Implementation Guidance Committee. Following that, the Board made further amendments to IAS 39:

What are the principles of IFRS-IAS 39?

IAS 39 establishes principles for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. It also prescribes principles for derecognising financial instruments and for hedge accounting.

When is a non financial contract within the scope of IAS 39?

Contracts to buy or sell non-financial items are within the scope of IAS 39 if they can be settled net in cash or another financial asset and are not entered into and held for the purpose of the receipt or delivery of a non-financial item in accordance with the entity’s expected purchase, sale, or usage requirements.