How should non-current financial liabilities be recorded initially?
A)At face value.
B)At fair value.
C)At fair value less transaction costs.
D)At face value less transaction costs.

Question

Quizplus · Accepted Answer

Non-current financial liabilities should be recorded initially at fair value less transaction costs. This approach reflects the actual cost to the entity of securing the financing, after accounting for the costs directly attributable to the transaction.

How Should Non-Current Financial Liabilities Be Recorded Initially