Page 73 - F2 Integrated Workbook STUDENT 2019
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Financial instruments
4.2 Initial recognition of financial assets
Per IFRS 9 Financial instruments, financial assets are initially recorded at their FAIR
VALUE (normally cost) PLUS transaction costs.
N.B. If the asset is classified as FVPL, the transaction costs are taken to P/L as an
expense.
Journal entry
Dr Financial Asset (cost of financial asset plus transaction costs)
Cr Cash
If FVPL only
Dr Financial Asset (cost of financial asset)
Dr P/L (transaction cost)
Cr Cash
65
