Financial Liabilities

Question 2 ‘Norma’ from financial liabilites chapter in notes.

It is an amortised cost example of recognition and measurement of a financial liability.

I worked it myself first and recognised it at present value (discounted the coupon CF and redemption value at end of year 4 using EIR) and deducted the transaction costs from the PV. Amortised it that way.

The solution deducts trans costs from FV of amount transferred and goes from there. Am I getting confused with the treatment of another liability/standard? Its 4 years old so i considered TVM.

Thanks