• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

Why do i need to remeasure or fair value a loan payable

Just wondering why I need to calculate fair values by way of initial recognition and subsequent measurement

asked Jun 15, 2017 in IAS 39 - Financial Instruments: Recognition and Measurement by anonymous

1 Answer

0 votes
All financial instruments are measured initially at fair value at first. Subsequent measurement comes at the end of the financial year. But if the two dates are close to each other the fair value can be the same. For instance if the initial transaction happens on 25th December then the subsequent measurement should come 31st. But it may be the same. However, Subsequent measurement depends on the category into which the financial instrument is classified.
answered Jun 28, 2017 by Jack