AASB 139 requires that on initial recognition, financial assets and liabilities be measured at:
A) historic cost;
B) fair value;
C) lower of cost or market;
D) net present value.

Question

Quizplus · Accepted Answer

AASB 139 requires financial assets and liabilities to be initially measured at fair value. This is because fair value provides the most relevant and reliable information about the current value of the asset or liability. Historic cost, lower of cost or market, and net present value may not provide accurate information about the current value of the asset or liability.

AASB 139 Requires That on Initial Recognition, Financial Assets and Liabilities