The gain or loss that is recognized (at the time of initial recognition) as the difference between a transaction price (in relation to an asset or a liability) and the item’s fair value. In other words, for an asset or liability that is measured at fair value at initial recognition, and where the determination of that fair value is based on a valuation method involving a quoted market price or fair value based on a valuation technique that uses observable data (inputs)- i.e., data from observable markets, the difference between the transaction price and that fair value is “immediately” recognized as a day-1 gain or loss (see: day-1 gain, day-1 loss).