According to IAS 39 Financial Instruments: Recognition and Measurement, at what amount should a financial instrument such as a long-term investment in the shares of a company initially be measured?A. Cost of the nearest equivalent financial instrumentB. Fair value of consideration givenC. Fair value of consideration given plus directly attributable transaction costsD. Fair value of consideration given less directly attributable transaction costs

IAS 39 is an Indian accounting standard which is related with the recognition and measurement of the…

Answered: According to IAS 39 Financial…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter6: Accounting Quality

Section: Chapter Questions

Problem 11QE

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According to IAS 39 Financial Instruments: Recognition and Measurement, at what amount should a financial instrument such as a long-term investment in the shares of a company initially be measured?

A. Cost of the nearest equivalent financial instrument
B. Fair value of consideration given
C. Fair value of consideration given plus directly attributable transaction costs
D. Fair value of consideration given less directly attributable transaction costs

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