My understanding: IFRS: HFT - Record initially at FV, exclude transaction costs, carry at FV AFS - Record initially at FV, include transaction costs, carry at FV & exclude transaction cost HTM - Record initially at FV, include transaction costs, carry at amort cost GAAP: HFT - Record initially at FV, exclude transaction costs, carry at FV AFS - Record initially at FV, include transaction costs, carry at FV & exclude transaction cost HTM - Record initially at cost, include transaction costs, carry at amort cost SO… HFT: GAAP and IFRS are same AFS: GAAP and IFRS are same (except for foreign exchange gains and losses) HTM: GAAP and IFRS differ in initial recording Thoughts?
HTM -> They mention also that Initial recording at FV is usually Cost. So essentially there is no difference. This is in the Book.
IFRS never specifies whether transaction cost is to be excluded explicitly at subsequent measurement, but as a matter of practicality, it would be convenient to exclude it. Also, as far as value measurement is concerned for those categories mentioned, IFRS and USGAAP differs slightly in the way to calculate the effective interest rate to be used in calculate amortized cost. They also slightly differ in definition of fair value, but I am just nitpicking.