The price that is recorded by an entity when acquiring an asset or assuming a liability in an exchange transaction (an orderly transaction between market participants). It is the price paid in either case and is thus recognized in the financial statements at that time (i.e., at initial recognition). As the name implies, transaction price is the amount of money at which an entity or a party takes position in the market, i.e., enters or transacts at the market.

For an asset, it is the price that the buyer would pay for the asset, while for a liability it represents the price that it would receive to transfer it.

It is also known as an entry price.

In general, a transaction price is the opposite of an exit price (though at times, these two prices converge, under specific circumstances).