CERTYNEX IFRS ACADEMY

In his closing file, an accountant writes: "IFRS 13 requires the day-one difference to be deferred in a liability and released to profit or loss over the life of the instrument." What is the error?

He attributes to IFRS 13 a treatment it does not provide: the difference goes to profit or loss, unless another standard provides otherwise.

He should have recognised the difference directly in equity.

He should have released the difference to profit or loss over the instrument's shorter life.

He should have ignored the difference, because fair value is not required at initial recognition, the item remaining measured at the price paid.