Chapter 7: First-time adoption

A first-time adopter that chooses an accounting policy of cost for its investments might recognise such investments either at cost determined in accordance with IAS 27 or at their deemed cost. The deemed cost is either:

• the fair value of the investment (determined in accordance with IFRS 9) on the date of transition to IFRS; or
• the previous GAAP carrying amount of the investment at the date of transition.

If a first-time adopter elects to measure a class of investments at cost, it can elect, on an investment-by-investment basis, to measure cost at deemed cost using fair value or to use the previous GAAP carrying amount.