brainsX

8) Which of these statements is accurate?

A) IFRS require held-to-maturity securities to be initially recognized at cost including transaction costs.
B) US GAAP require held-to-maturity securities to be initially recognized at fair value including transaction costs.
C) Both statements are incorrect.

This quesion is not exactly rightly worded. The actual treatment is
Cost Incl. Txn Costs under US GAAP.
Fair Value incl. Txn Cost under IFRS

However, in general -> Fair Value = Costs excluding Transaction Costs. So BOTH IFRS and US GAAP are IDENTICAL in their initial value estimation for HTM securities.

CP