A measurement or recognition inconsistency (mismatch) that arises from using different measurement models for asset or liability values or different recognition bases for recording the gains or losses associated with, or corresponding, to these assets/ liabilities. The mismatch translates into inability to have a proper matching for items on both sides of the balance sheet (statement of financial position) that are perceived to have an economic relationship (that is, a liability may be perceived to be related to an asset when the two share a risk that creates opposite, offsetting changes in fair value or when the liability is clearly defined as a source of funding for that exact asset).

For example, an accounting mismatch may arise from the situation where the cash flows of a liability are contractually linked to assets that are available for sale. In practice, and where the fair value option is not available a financial asset could be classified as available for sale, that is changes in fair value are mainly recognized in equity, while a related liability is measured at amortized cost, where changes in fair value are not considered and consequently will not be recognized.