Page 67 - F2 Integrated Workbook STUDENT 2019
P. 67
Financial instruments
3.2 Initial recognition of financial liabilities
Per IFRS 9 Financial instruments, financial liabilities are initially
recorded at FAIR VALUE LESS transaction costs.
N.B. If the financial asset is classified as FVPL, transaction costs are
taken to P/L as an expense.
Par value of liability x
Less
discount (x)
––––
Cash received x
––––
Less
Transaction costs (x)
––––
Amount initially Dr Cash
recorded x Cr Financial Liability
––––
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