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Question · Transaction price and fair value

The Brélane fund acquires a financial instrument for 500,000 in cash. The fair value at the acquisition date, from a technique based on observable inputs, is 540,000. Fair value is required at initial recognition and no provision of another standard requires the difference to be deferred (case data). Record the acquisition entry.

Price paid
500,000
Fair value at acquisition
540,000
Your answer
  1. Line 1

    Account Financial asset at fair value

  2. Line 2

    Account Cash

  3. Line 3

    Account Fair value gain at initial recognition

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