IFRS 13Chapter 8Lesson 1
At initial recognition: transaction price, fair value and day-one difference
Step 1 of 6Learning objectives
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The transaction price is an entry price, fair value an exit price: they may differ. The entity checks whether the transaction price represents fair value; any difference is recognised in profit or loss unless the standard applicable to the item provides otherwise.
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Learning objectives
- Analyse whether the transaction price represents fair value at initial recognition.
- Calculate the difference between the fair value from a technique and the transaction price.
- Determine who decides the treatment of the day-one difference.