At the acquisition date, Brelinde pays 2,500,000 for an instrument, a price it regards (case data) as its fair value at initial recognition. It will then measure the instrument using a model with unobservable inputs, which gives 2,380,000 at that date. Compute the calibration adjustment that makes the model's initial result equal to the transaction price.
- Transaction price
- 2,500,000
- Initial model result
- 2,380,000