financial instrument at initial recognition

The fair value of a financial instrument at initial recognition is normally the transaction price (i.e.the fair value of the consideration given or received.However, if part of the consideration given or received is for something other than the financial instrument, an entity shall measure the fair value of the financial instrument. For example, the fair value of a long term loan or receivable that carries no interest can
be measured as the present value of all future cash receipts discounted using the prevailing market.



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