Skip to contentSkip to search

Current cost of a liability

In the Conceptual Framework, current cost is an entry-value measurement basis: it reflects the terms on which an equivalent liability could be incurred now. It is distinct from the amount required to transfer or settle an existing liability, and from historical proceeds when market conditions have changed. A particular IFRS standard determines whether a current-cost measurement is actually required.

Worked example

An entity could receive $98,000 today for taking on an equivalent obligation and would incur $2,000 in transaction costs. On these assumptions its current cost is $96,000.

Common mistake

Calling current cost the amount needed to settle the liability; that is a different measurement concept.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA FR Direct September 2026–June 2027
ACCA SBR Supporting September 2026–June 2027