All investments are recorded at fair value upon acquisition.

Question

Quizplus · Accepted Answer

According to the IFRS (International Financial Reporting Standards), all investments are required to be initially recognized at their fair value upon acquisition. This includes investments in equity securities, debt securities, and other financial assets. However, there are some exceptions to this rule, such as investments in associates, joint ventures, and subsidiaries, which are accounted for using different methods. Nevertheless, the general principle is that investments are measured at their current fair value at the time of purchase, and any subsequent changes in value are recognized in the financial statements.

All Investments Are Recorded at Fair Value Upon Acquisition