Route 102 – One man’s year-long journey……Day 38

  • By Jeremy Williams
  • 12/03/2015

To mark this momentous year for UK GAAP, I'm embarking on a mission to work my way through FRS 102, reading a portion on each working day of 2015 and writing a short blog entry on my thoughts and musings (be they few or many).

Day 38 (12 Mar)

I'm in Haydock today, and running back-to-back courses on accounting developments. In the meantime, a quick post on initial and subsequent measurement of non-basic financial instruments.

They're held at fair value.

Okay, maybe that was a little TOO brief. The initial fair value is normally the transaction price. For the majority of section 12 instruments, this will not include transaction costs as they will be subsequently measured at 'fair value through profit or loss' or FVTPL. Otherwise transaction costs are included. Non-market rate transactions are (like those in section 11) measured initially at the present value of future cash flows - let's abbreviate this to PVFCF.

That's all for this week - Back on Tuesday To Outline More (let's abbreviate this to BOTTOM).

P.S. If you missed yesterday's instalment click here

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