CERTYNEX IFRS ACADEMY

At 31 December, Orsanne measures a liability using a transfer price observed on 30 September, ignoring the market conditions at 31 December, on the grounds that "the nature of the price has not changed". What is the error?

It should not measure liabilities at fair value at 31 December.

It uses a transfer price whereas the fair value of a liability is the price of settlement with the creditor.

It should use the initial issue price of the liability.

It ignores the measurement date: fair value is the price at that date, under the market conditions of the time.