AASB 9 requires that on initial recognition,financial assets and liabilities be measured at:
A)fair value.
B)historical cost.
C)net present value.
D)lower of cost or market value.

Question

Quizplus · Accepted Answer

AASB 9 requires that financial assets and liabilities be measured at fair value on initial recognition, except for certain cases where the entity has elected to use the amortised cost or the fair value through other comprehensive income (FVOCI) measurement method. The fair value measurement provides more relevant and reliable information about the value of the asset or liability at the time of initial recognition.

AASB 9 Requires That on Initial Recognition,financial Assets and Liabilities