CERTYNEX IFRS ACADEMY

A student reviews the initial measurement of a financial asset not measured at FVTPL. Which sentence correctly describes what IFRS 9 provides and its reference to IFRS 13?

IFRS 9 requires initial measurement at historical cost, then refers to IFRS 13 to measure fair value at the reporting date.

IFRS 9 sets initial measurement at fair value adjusted for transaction costs; how that fair value is determined falls under IFRS 13 (cross-reference).

IFRS 9 sets initial measurement at fair value and itself determines the valuation techniques, without referring to another standard.

IFRS 9 sets initial measurement at fair value without adjustment, with transaction costs being expensed.