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WorkpaperIFRS 13 — Fair Value MeasurementL3 · L4

Day one difference analysis

4 missions9 sections to document50 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For each transaction (one instance per instrument), describe the facts and the standard that applies to the item, compare the transaction price with the fair value given by the technique, compute the initial difference and, where relevant, the calibration adjustment, justify the treatment (no difference, profit or loss, deferral) under the applicable standard, then prepare the entry and its effect on the financial statements. IFRS 13 does not itself say where to recognise the difference: the treatment refers to the standard that applies to the item.

9 sections · 17 blocks · 2 calculations · 2 entries

IFRS 13 §57
IFRS 13 §58
IFRS 13 §59
IFRS 13 §60
IFRS 13 §64

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

4 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Day one difference and portfolio exception of a bank

Case tasks documented here

Compute the initial difference of X and Y.
Compute the calibration adjustment of W.
Which treatment should be used for the difference of X, Y and W? Justify.
Record the acquisitions of X and Y.

Inputs

Transaction: parties, terms and unit of account
TextRequired
OBLIGATION_STRUCTUREE_X
Treatment of the difference provided by the standard that applies to the item (to be cited)
Text
NORME_APPLICABLE_DONNEE_DU_CAS
Transaction price
Number
1,000,000
Fair value given by the technique at the initial date
Number
1,060,000
Transaction price equal to fair value (calibration)
Number
Initial result of the technique before calibration
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transaction price

Analysis

IFRS 13 §57IFRS 13 §58IFRS 13 §59IFRS 13 §60

Points reviewed: transaction price and fair value
ChecklistRequired
- Entry price compared with exit price
- Related parties or duress ruled out
- Same unit of account
- Market of the transaction same as the reference market

Calculations

IFRS 13 §60IFRS 13 §64

Initial difference: fair value − transaction price
Calculation
60,000
Fair value given by the technique at the initial date ; − Transaction price
Calibration adjustment: transaction price − initial result
Calculation
0
Transaction price equal to fair value (calibration) ; − Initial result of the technique before calibration

Journal entries

Entries

Initial difference recognised in profit or loss
Entry
Account Debit Credit
Financial asset at fair value 1,060,000
Cash 1,000,000
Fair value gain 60,000
Initial difference deferred in the instrument's measurement (applicable standard)
Entry
Account Debit Credit
Financial asset at fair value 1,060,000
Cash 1,000,000
Day one difference deferral adjustment (reduces the asset) 60,000

Account	Debit	Credit
Financial asset at fair value	1,060,000
Cash		1,000,000
Fair value gain		60,000

Account	Debit	Credit
Financial asset at fair value	1,060,000
Cash		1,000,000
Day one difference deferral adjustment (reduces the asset)		60,000

Treatment of the difference

Judgment

IFRS 13 §60

Treatment of the initial difference
JudgmentRequired
Difference recognised in profit or loss
No difference to recognise (transaction price = fair value) / Difference recognised in profit or loss / Difference deferred under the applicable standard
Rule and cross-reference: the difference is recognised in profit or loss unless the standard that applies to the item provides otherwise; any deferral comes from that standard, not from IFRS 13.
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Initial difference, calibration and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Treatment documentedPass
Profit or loss entry balancedPass
Deferral entry balancedPass

Assets: 60,000
Liabilities: 0
Profit or loss: 60,000
OCI: 0
Equity: 60,000

File and entity

Day one difference and portfolio exception of a bank

Case tasks documented here

Compute the initial difference of X and Y.
Compute the calibration adjustment of W.
Which treatment should be used for the difference of X, Y and W? Justify.
Record the acquisitions of X and Y.

Inputs

Transaction: parties, terms and unit of account
TextRequired
TITRE_DE_CREANCE_SUR_MESURE_Y
Treatment of the difference provided by the standard that applies to the item (to be cited)
Text
NORME_APPLICABLE_DONNEE_DU_CAS
Transaction price
Number
2,000,000
Fair value given by the technique at the initial date
Number
2,150,000
Transaction price equal to fair value (calibration)
Number
Initial result of the technique before calibration
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transaction price

Analysis

IFRS 13 §57IFRS 13 §58IFRS 13 §59IFRS 13 §60

Points reviewed: transaction price and fair value
ChecklistRequired
- Entry price compared with exit price
- Related parties or duress ruled out
- Same unit of account
- Market of the transaction same as the reference market

Calculations

IFRS 13 §60IFRS 13 §64

Initial difference: fair value − transaction price
Calculation
150,000
Fair value given by the technique at the initial date ; − Transaction price
Calibration adjustment: transaction price − initial result
Calculation
0
Transaction price equal to fair value (calibration) ; − Initial result of the technique before calibration

Journal entries

Entries

Initial difference recognised in profit or loss
Entry
Account Debit Credit
Financial asset at fair value 2,150,000
Cash 2,000,000
Fair value gain 150,000
Initial difference deferred in the instrument's measurement (applicable standard)
Entry
Account Debit Credit
Financial asset at fair value 2,150,000
Cash 2,000,000
Day one difference deferral adjustment (reduces the asset) 150,000

Account	Debit	Credit
Financial asset at fair value	2,150,000
Cash		2,000,000
Fair value gain		150,000

Account	Debit	Credit
Financial asset at fair value	2,150,000
Cash		2,000,000
Day one difference deferral adjustment (reduces the asset)		150,000

Treatment of the difference

Judgment

IFRS 13 §60

Treatment of the initial difference
JudgmentRequired
Difference deferred under the applicable standard
No difference to recognise (transaction price = fair value) / Difference recognised in profit or loss / Difference deferred under the applicable standard
Rule and cross-reference: the difference is recognised in profit or loss unless the standard that applies to the item provides otherwise; any deferral comes from that standard, not from IFRS 13.
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Initial difference, calibration and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Treatment documentedPass
Profit or loss entry balancedPass
Deferral entry balancedPass

Assets: 150,000
Liabilities: 0
Profit or loss: 150,000
OCI: 0
Equity: 150,000

File and entity

Day one difference and portfolio exception of a bank

Case tasks documented here

Compute the initial difference of X and Y.
Compute the calibration adjustment of W.
Which treatment should be used for the difference of X, Y and W? Justify.
Record the acquisitions of X and Y.

Inputs

Transaction: parties, terms and unit of account
TextRequired
INSTRUMENT_W_TRANSACTION_ORDONNEE
Treatment of the difference provided by the standard that applies to the item (to be cited)
Text
Transaction price
Number
Fair value given by the technique at the initial date
Number
Transaction price equal to fair value (calibration)
Number
1,200,000
Initial result of the technique before calibration
Number
1,250,000

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transaction price

Analysis

IFRS 13 §57IFRS 13 §58IFRS 13 §59IFRS 13 §60

Points reviewed: transaction price and fair value
ChecklistRequired
- Entry price compared with exit price
- Related parties or duress ruled out
- Same unit of account
- Market of the transaction same as the reference market

Calculations

IFRS 13 §60IFRS 13 §64

Initial difference: fair value − transaction price
Calculation
0
Fair value given by the technique at the initial date ; − Transaction price
Calibration adjustment: transaction price − initial result
Calculation
-50,000
Transaction price equal to fair value (calibration) ; − Initial result of the technique before calibration

Journal entries

Entries

Initial difference recognised in profit or loss
Entry
Debit Financial asset at fair value ← Fair value given by the technique at the initial date ; Credit Cash ← Transaction price ; Credit Fair value gain ← Initial difference: fair value − transaction price
Initial difference deferred in the instrument's measurement (applicable standard)
Entry
Debit Financial asset at fair value ← Fair value given by the technique at the initial date ; Credit Cash ← Transaction price ; Credit Day one difference deferral adjustment (reduces the asset) ← Initial difference: fair value − transaction price

Treatment of the difference

Judgment

IFRS 13 §60

Treatment of the initial difference
JudgmentRequired
No difference to recognise (transaction price = fair value)
No difference to recognise (transaction price = fair value) / Difference recognised in profit or loss / Difference deferred under the applicable standard
Rule and cross-reference: the difference is recognised in profit or loss unless the standard that applies to the item provides otherwise; any deferral comes from that standard, not from IFRS 13.
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Initial difference, calibration and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Treatment documentedPass
Profit or loss entry balancedNot evaluated
Deferral entry balancedNot evaluated

Assets: 0
Liabilities: 0
Profit or loss: 0
OCI: 0
Equity: 0

File and entity

Fair value measurement file of an industrial and financial group

Case tasks documented here

Compute the initial difference of the instrument acquired.
Which treatment should be used for the initial difference? Justify.
Record the acquisition of the instrument.

Inputs

Transaction: parties, terms and unit of account
TextRequired
INSTRUMENT_ACQUIS_LE_15_OCTOBRE
Treatment of the difference provided by the standard that applies to the item (to be cited)
Text
NORME_APPLICABLE_DONNEE_DU_CAS
Transaction price
Number
5,000,000
Fair value given by the technique at the initial date
Number
5,120,000
Transaction price equal to fair value (calibration)
Number
Initial result of the technique before calibration
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transaction price

Analysis

IFRS 13 §57IFRS 13 §58IFRS 13 §59IFRS 13 §60

Points reviewed: transaction price and fair value
ChecklistRequired
- Entry price compared with exit price
- Related parties or duress ruled out
- Same unit of account
- Market of the transaction same as the reference market

Calculations

IFRS 13 §60IFRS 13 §64

Initial difference: fair value − transaction price
Calculation
120,000
Fair value given by the technique at the initial date ; − Transaction price
Calibration adjustment: transaction price − initial result
Calculation
0
Transaction price equal to fair value (calibration) ; − Initial result of the technique before calibration

Journal entries

Entries

Initial difference recognised in profit or loss
Entry
Account Debit Credit
Financial asset at fair value 5,120,000
Cash 5,000,000
Fair value gain 120,000
Initial difference deferred in the instrument's measurement (applicable standard)
Entry
Account Debit Credit
Financial asset at fair value 5,120,000
Cash 5,000,000
Day one difference deferral adjustment (reduces the asset) 120,000

Account	Debit	Credit
Financial asset at fair value	5,120,000
Cash		5,000,000
Fair value gain		120,000

Account	Debit	Credit
Financial asset at fair value	5,120,000
Cash		5,000,000
Day one difference deferral adjustment (reduces the asset)		120,000

Treatment of the difference

Judgment

IFRS 13 §60

Treatment of the initial difference
JudgmentRequired
Difference recognised in profit or loss
No difference to recognise (transaction price = fair value) / Difference recognised in profit or loss / Difference deferred under the applicable standard
Rule and cross-reference: the difference is recognised in profit or loss unless the standard that applies to the item provides otherwise; any deferral comes from that standard, not from IFRS 13.
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Initial difference, calibration and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Treatment documentedPass
Profit or loss entry balancedPass
Deferral entry balancedPass

Assets: 120,000
Liabilities: 0
Profit or loss: 120,000
OCI: 0
Equity: 120,000

Inputs

Transaction: parties, terms and unit of account
TextRequired
Treatment of the difference provided by the standard that applies to the item (to be cited)
Text
Transaction price
Number
Fair value given by the technique at the initial date
Number
Transaction price equal to fair value (calibration)
Number
Initial result of the technique before calibration
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis of the transaction price

Analysis

IFRS 13 §57IFRS 13 §58IFRS 13 §59IFRS 13 §60

Points reviewed: transaction price and fair value
ChecklistRequired
- Entry price compared with exit price
- Related parties or duress ruled out
- Same unit of account
- Market of the transaction same as the reference market

Calculations

IFRS 13 §60IFRS 13 §64

Initial difference: fair value − transaction price
Calculation
Fair value given by the technique at the initial date ; − Transaction price
Calibration adjustment: transaction price − initial result
Calculation
Transaction price equal to fair value (calibration) ; − Initial result of the technique before calibration

Journal entries

Entries

Initial difference recognised in profit or loss
Entry
Debit Financial asset at fair value ← Fair value given by the technique at the initial date ; Credit Cash ← Transaction price ; Credit Fair value gain ← Initial difference: fair value − transaction price
Initial difference deferred in the instrument's measurement (applicable standard)
Entry
Debit Financial asset at fair value ← Fair value given by the technique at the initial date ; Credit Cash ← Transaction price ; Credit Day one difference deferral adjustment (reduces the asset) ← Initial difference: fair value − transaction price

Treatment of the difference

Judgment

IFRS 13 §60

Treatment of the initial difference
JudgmentRequired
No difference to recognise (transaction price = fair value) / Difference recognised in profit or loss / Difference deferred under the applicable standard
Rule and cross-reference: the difference is recognised in profit or loss unless the standard that applies to the item provides otherwise; any deferral comes from that standard, not from IFRS 13.
Rationale: facts relied on, analysis, alternative rejected
TextRequired

Conclusion

Initial difference, calibration and treatment submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Normative references

References

Paragraphs cited in this workpaper and their verification status
References