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Under Ind AS 109, a financial asset measured at AMORTISED COST is initially recognised at:
AFace value, with transaction costs expensed immediately
BFair value, with transaction costs deferred and recognised over the asset's life
CCost less impairment, regardless of fair value
DFair value plus transaction costs directly attributable to the acquisition of the financial asset
Answer & Solution
Correct answer: D. Fair value plus transaction costs directly attributable to the acquisition of the financial asset
Para 5.1.1 — amortised-cost assets are recognised at FV + directly attributable transaction costs. For FVTPL assets, transaction costs are expensed (NOT added to initial recognition). For FVOCI debt instruments, transaction costs are added like amortised cost. For FVOCI equity (irrevocable election), transaction costs are added.
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