IAS-39 – Financial Instruments: Recognition and Measurement :
Under this standard an entity shall recognize a financial asset or financial liability on the balance sheet when and only when, the entity becomes a party to the contractual provisions of the instrument. An entity shall derecognise a financial asset when, the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of (a) the consideration received and (b) any cumulative gain or loss that had been recognized directly in equity shall be recognized in profit or loss.
When a financial asset or liability is recognized initially, an entity shall measure it at its fair value plus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial assets or financial liability. After initial recognition, an entity shall measure all financial liabilities at amortised cost using the effective interest method.