IFRS 9Chapter 3Lesson 1
Recognising a financial instrument and measuring it on entry
Step 1 of 7Learning objectives
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A financial asset is recognised when the entity becomes party to the contract; it enters at fair value, adjusted for transaction costs unless measured at FVTPL, and trade receivables without a significant financing component enter at the transaction price.
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Learning objectives
- State when a financial instrument is recognised.
- Distinguish trade-date from settlement-date accounting.
- Calculate the initial amount of a financial asset or liability and post the entry.
- Recognise the exception for trade receivables measured at the transaction price.