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IFRS treatment for Trade payables?

What is the IFRS treatment for Trade payables? Are they financial liabilities? Can I state at cost or discounted values?

asked Nov 24, 2012 in IAS 39 - Financial Instruments: Recognition and Measurement by AndyK Level 2 Member (3,850 points)
recategorized Jan 13, 2013 by Mysio

1 Answer

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Best answer
Trade payables are financial liabilities and classified as other financial liabilities.Initially they are measured at fair value plus transaction cost. Usually the transaction price may be the initial fair value of the creditor. Subsequently they are measured at amortized cost using the effective interest rate method.
answered Nov 25, 2012 by Hameez Level 1 Member (2,070 points)
selected Jan 27, 2013 by Mysio