We have recently participated in several discussions with entities that struggled with accounting for day-one results under IFRS. One would expect the day- one result to be small due to the fact that the transaction prices paid, which are assumed to be accurate evidence for the fair value of financial assets or liabilities. But what if the day-one result is significant? Was there a lucky buy or is it your valuation model that needs finetuning?

We have prepared this article to assist entities in better understanding of and accurately account for day-one results under IFRS.