Q1, 2011 Financial and Operating Results Operating Results and Construction on Plan

NEWS RELEASE ELD No. 11-08 TSX: ELD NYSE: EGO ASX:EAU May 5, 2011

Q1, 2011 Financial and Operating Results Operating Results and Construction on Plan

Earnings per share $0.10; Cash Flow per share $0.17 (all figures in United States dollars unless otherwise noted)

VANCOUVER, BC – Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, (“Eldorado” the “Company” or “we”) is pleased to report on the Company's financial and operational results for the first quarter ended March 31, 2011. Eldorado reported net income attributable to shareholders of the Company of $52.5 million for the period and generated $91.7 million in cash from operating activities before changes in non-cash working capital.

“All of our mines performed in accordance with their operating plans in terms of production and operating costs to produce 148,577 ounces of gold at a cash operating cost of $410 per ounce. During the quarter we also completed the Phase III expansion at Kisladag and a major overhaul of the primary crusher mainframe. Construction at Efemcukuru remains on schedule with first gold to be produced this quarter. With a strong start to the year, the Company retains its guidance of producing 715,000-770,000 ounces at cash operating cost of $375-395/oz.” said Paul Wright, President and CEO of Eldorado Gold.

Q1 2011 Highlights

• Increased proven and probable gold reserves to 18.7 million ounces and measured and indicated resources to 22.9 million ounces
• Produced 148,577 ounces of gold at an average cash operating cost of $410 per ounce (total cash cost $462 per ounce)
• Sold 148,530 ounces of gold at an average realized price of $1,397 per ounce
• Reported earnings of $0.10 per share
• Generated $91.7 million ($0.17 per share) from operating activities before changes in non-cash working capital
• Paid dividend of $0.05 to shareholders on record February 11, 2011

Financial Results

Eldorado’s consolidated net income attributable to the shareholders of the Company for the first quarter of 2011 was $52.5 million or $0.10 per share compared to $50.5 million or $0.09 per share in the first quarter of 2010. The increase in profit for the period was the result of a higher gold price and a contributing profit from Vila Nova.

In the first quarter of the year, 148,530 ounces of gold were sold at an average price of $1,397 per ounce compared to 163,446 ounces of gold at an average realized price of $1,110 per ounce in the first quarter of 2010. In addition, 85,421 dry metric tonnes of iron ore were sold at an average price of $124 per dry metric tonne.

Operating Performance

Kisladag During the quarter, 2,341,635 tonnes of ore were placed on the leach pad at an average grade of 1.04 grams of gold per tonne. We produced 50,833 ounces of gold at a cash operating cost of $386 per ounce, compared to record production of 82,240 ounces of gold at a cash operating cost of $304 per ounce in the first quarter of 2010. Production was lower than the first quarter of 2010 in part due to the planned major overhaul of the primary crusher mainframe and integrating the Phase III expansion.

Tanjianshan(“TJS”)

TJS produced 28,493 ounces of gold at a cash operating cost of $402 per ounce in Q1 2011, as compared to 25,423 ounces at a cash operating cost of $420 per ounce in Q1 2010. Additional roaster feed provided by Qinglongtan concentrate has helped TJS to increase gold production while processing lower grade ore.

Jinfeng The operation processed 384,400 tonnes of ore at a grade of 4.32 grams of gold per tonne and produced 48,564 ounces of gold at a cash operating cost of $430 per ounce. Strip ratio fell at Jinfeng to 1.61:1 this quarter as a result of the planned mining at the bottom of the open pit during the quarter.

White Mountain At our White Mountain mine, we processed 140,211 tonnes of ore at a grade of 5.70 grams of gold per tonne and produced 20,687 ounces of gold at a cash operating cost of $438 per ounce. White Mountain achieved record production during the quarter was due to higher grade and improved recoveries.

Vila Nova In the quarter, 138,114 tonnes of run-of-mine iron ore were mined. Two shipments, one of lump ore and another of sinter fines, totalling 85,421 dry metric tonnes were made during the quarter. Both of these shipments were sold into the Chinese spot market at prices averaging $124 per dry metric tonne delivered to the Santana Port in Brazil. Total cash cost (including royalties, production taxes and shipping costs) were approximately $53 per tonne.

Development

Efemcukuru Dry commissioning of the concentrator plant continued during the quarter. The majority of the circuit was tested with the exception of the gold room which was reaching the final stages of completion. The high voltage power supply was tied into the plant in April. Wet commissioning of the plant is projected to take place in the second quarter. The remaining construction activity at site has focused on completion of the filtration and backfill plants. All mechanical equipment has been installed. Piping and electrical installations have been ongoing.

Underground development continued on schedule with approximately 3,000 meters of development completed by the end of the quarter representing approximately 70% of the contract value. A portable crusher is on site to provide temporary crushing capacity of ore production during the commissioning of the plant until the underground crusher installation has been completed, which is projected to be in the third quarter of 2011.

Eastern Dragon During the quarter construction continued at the Eastern Dragon Project despite extreme weather conditions. We successfully advanced the winter works program schedule safely and efficiently through this difficult period. Currently we are focused on the civil and structural installations.

Perama Hill The Ministry of Environment continues to review our Preliminary Environmental Impact Assessment. As part of our ongoing efforts to work with various levels of government and other stakeholders in regards to educating and providing a better understanding of best practises in modern gold mining, specifically in the European Union, arrangements were made to take stakeholders to visit mining operations in Finland. We continue our efforts with government officials to advance the permitting process and answer any questions they may have regarding the benefits the Perama Hill project can bring to Greece.

Tocantinzinho (“TZ”)

Subsequent to the end of the quarter, the Company released a Positive Technical Study (“Study”) on the 100% owned Tocantinzinho Gold Project located in Para state in Central Brazil. The Study highlighted an 11-year open pit mine that will operate with a production rate of 4.4 million tonnes per year producing an average of 159,000 ounces of gold annually at a cash operating cost of $559 per ounce. Initial capital investment will be $383.5 million.

Exploration

Turkey During the first quarter, exploration in Turkey focused on drilling at Sayacik and AS and on fieldwork related to target definition at several other early-stage prospects. Exploration drilling at the Kisladag and Efemcukuru mine areas will commence during the second quarter.

At Sayacik, the final drill holes of the 2010 program that targeted the remaining untested geophysical anomalies on the property were completed. Both drill holes intersected altered volcaniclastic and intrusive rock sequences, but had no significant mineralization. All assay results have been received from the 2010 drilling program and no further work is planned at this time.

At the AS deposit, two drill holes tested surface geochemical anomalies, completing the planned 2010 program. The low-grade Cu, Mo, and Au values obtained from the program do not support further exploration on the property at this time. We also completed reconnaissance fieldwork, including mapping and soil geochemistry surveys on the early-stage Dogancilar and Atalan projects this winter.

Brazil During the first quarter at TZ we drilled 11 diamond drill holes (3,691 meters) to test exploration targets peripheral to the main deposit area. These targets were defined by a combination of surface soil geochemical anomalies, chargeability or resistivity anomalies and areas of known mineralization based on garimpero workings or surface gold occurrences. Several of the drill holes encountered granitoid units with similar lithologic, alteration, and mineralisation character to that found in the TZ deposit, although gold assay results received from the first few drill holes have been limited to narrow, low grade intercepts.

Soil sampling programs during the quarter were initiated to extend the area of coverage both along and peripheral to the TZ trend. In addition, grid-based augur drilling commenced within areas containing broad gold geochemical anomalies in soil to more closely define targets for diamond drilling.

At Agua Branca where we hold an option, fieldwork this quarter focused on soil geochemical sampling aimed at defining targets for diamond drilling in the second and third quarter of 2011.

China During the quarter we focused our exploration on projects in the Guizhou region. Three drill holes totalling 331 meters were completed at the Banna and Weiruo prospects in Jinluo Exploration License.

At the Jinfeng mine, we completed 3,607 meters of underground drilling from the 310 level mainly devoted to infill of the mineralized zones along the F2, F3, and F7 faults. We also completed reverse circulation drilling in the Rongban portion of the deposit to better define the continuity and extent of mineralized zones. We made progress on a revised structural/lithologic model for the deposit, directed towards refining our knowledge of controls on gold distribution, defining new drill targets, and helping constrain future resource estimates.

In the White Mountain, Eastern Dragon and TJS areas, field activities were limited by winter conditions but plans for the 2011 program were completed during the quarter.

Eldorado is a gold producing, exploration and development company actively growing businesses in Turkey, China, Greece, Brazil. With our international expertise in mining, finance and project development, together with highly skilled and dedicated staff, we believe that our company is well positioned to grow in value as we create and pursue new opportunities.

ON BEHALF OF ELDORADO GOLD CORPORATION

“Paul N. Wright”

Paul N. Wright President and Chief Executive Officer

Eldorado will host a conference call on Friday, May 6, 2011 to discuss the 2011 First Quarter Financial and Operating Results at 11:30 a.m. EDT (8:30 a.m. PDT). You may participate in the conference call by dialling 416-340-8527 in Toronto or 1-877-440-9795 toll free in North America and asking for the Eldorado Conference Call with Chairperson: Paul Wright, President and CEO of Eldorado Gold. The call will be available on Eldorado’s website. www.eldoradogold.com. A replay of the call will be available until May 13, 2011 by dialling 905-694-9447 in Toronto or 1-800-408-3053 toll free in North America and entering the Pass code: 7200381.

Certain of the statements made herein may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, but not always, forward- looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements or information herein include, but are not limited, to the Company’s Q1, 2011 Financial and Operating Results.

Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. We have made certain assumptions about the forward-looking statements and information and even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others, the following: gold price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the sections entitled “Forward-Looking Statements” and "Risk Factors" in the Company's Annual Information Form & Form 40-F dated March 31, 2011

There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward- looking statements and information continually as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada and the U.S.

Eldorado Gold Corporation’s common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO). Our Chess Depositary Interests trade on the Australian Securities Exchange (ASX: EAU).

Contact:

Nancy Woo, VP Investor Relations Eldorado Gold Corporation Phone: 604.601-6650 or 1.888.353.8166 1188, 550 Burrard Street Fax: 604.687.4026 Vancouver, BC V6C 2B5 Email: [email protected] Web site: www.eldoradogold.com Request for information packages:[email protected]

PRODUCTION HIGHLIGHTS

	First Quarter 2011	First Quarter 2010	Second Quarter 2010	Third Quarter 2010	Fourth Quarter 2010
Gold Production Ounces Sold Ounces Produced Cash Operating Cost ($/oz)1,3 Total Cash Cost ($/oz)2,3 Realized Price ($/oz - sold)	148,530 148,577 410 462 1,397	163,446 164,928 370 397 1,110	172,826 167,940 357 410 1,195	154,655 151,297 386 431 1,231	149,022 148,374 418 460 1,373
Kişladağ Mine, Turkey Ounces Sold Ounces Produced Tonnes to Pad Grade (grams / tonne) Cash Operating Cost ($/oz)3 Total Cash Cost ($/oz)2,3	50,832 50,833 2,341,635 1.04 386 408	83,974 82,240 2,898,199 1.12 304 307	69,197 70,451 2,686,284 1.12 304 345	66,113 62,086 2,767,179 0.98 337 359	59,741 59,815 2,021,057 1.00 382 354
Tanjianshan Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz)3 Total Cash Cost ($/oz)2,3	28,493 28,493 238,070 3.90 402 515	18,947 25,423 249,738 4.01 420 517	38,261 28,884 271,749 4.38 387 483	28,847 28,847 283,598 3.84 391 493	30,710 30,710 244,867 4.59 349 459
Jinfeng Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 3 Total Cash Cost ($/oz) 2,3,4	48,518 48,564 384,400 4.32 430 482	49,674 45,615 389,851 4.23 422 462	48,623 52,659 392,211 4.51 381 423	45,447 46,116 387,427 4.42 425 473	38,282 37,560 387,710 3.81 486 585
White Mountain Mine, China Ounces Sold Ounces Produced Tonnes Milled Grade (grams / tonne) Cash Operating Cost ($/oz) 3 Total Cash Cost ($/oz) 2,3	20,687 20,687 140,211 5.71 438 475	10,851 11,650 130,643 4.09 550 589	16,745 15,946 167,981 3.78 442 474	14,248 14,248 154,125 4.01 477 507	20,289 20,289 169,669 4.06 498 536

1 Cost figures calculated in accordance with the Gold Institute Standard.

2 Cash Operating Costs, plus royalties and the cost of off-site administration.

3 Cash operating costs and total cash costs are non-GAAP measures. See the section "Non-GAAP Measures" of this Review.

Unaudited Condensed Consolidated Balance Sheets

(Expressed in thousands of U.S. dollars)

March 31, December 31, January 1, Note 2011 2010 2010

ASSETS Current assets

Cash and cash equivalents 294,116 314,344 265,369 Restricted cash 6 55,399 52,425 50,000 Marketable securities 6,864 8,027 13,951 Accounts receivable and other 34,123 42,437 26,434 Inventories 147,982 147,263 129,197 538,484 564,496 484,951 Inventories 28,940 29,627 31,534 Investment in significantly influenced company 5 6,324 6,202 - Deferred income tax assets 6,562 - - Restricted assets and other 19,741 19,328 13,759 Property, plant and equipment 2,742,579 2,699,787 2,527,567 Goodwill 365,928 365,928 324,935 3,708,558 3,685,368 3,382,746

LIABILITIES & EQUITY Current liabilities

Accounts payable and accrued liabilities 148,490 145,695 153,036 Current debt 7 93,648 98,523 56,499 242,138 244,218 209,535 Debt 7 63,596 68,140 134,533 Asset retirement obligations 33,632 33,228 26,995 Pension fund obligation 12,595 12,019 7,811 Deferred tax liabilities 329,537 330,512 355,425 681,498 688,117 734,299

Equity

Share capital 11 2,818,238 2,814,679 2,671,634 Treasury stock 12(b) (5,870) - - Contributed surplus 28,326 22,967 17,865 Accumulated other comprehensive income (2,213) (1,637) 2,227 Retained earnings (deficit) 149,953 125,221 (69,423)

Total equity attributable to shareholders of the

Company 2,988,434 2,961,230 2,622,303 38,626 36,021 26,144

Attributable to non-controlling interests

3,027,060 2,997,251 2,648,447 3,708,558 3,685,368 3,382,746

Subsequent events 7(a)(d)

Approved on behalf of the Board of Directors

(Signed) Robert Gilmore Director (Signed) Paul N. Wright Director

See accompanying notes to consolidated financial statements.

Unaudited Condensed Consolidated Income Statements

For the quarter ended March 31 Note 2011 2010

Revenue

Metal sales 218,073 181,479

Cost of sales Production costs 74,311 64,590 31,217 23,333 Depreciation and amortization 105,528 87,923

Total cost of sales

112,545 93,556

Gross profit

Exploration expenses 3,841 3,333 Mine standby costs - 706 General and administrative expenses 21,034 10,418 Employee benefit expenses 8 423 211 Share based payments 7,352 6,947 Asset retirement obligation costs 366 513 647 (1,560) Foreign exchange loss (gain)

Gain on disposal of assets - (1,506) 78,882 74,494

Operating profit

Gain on marketable securities (635) (1,112) Other (income) expenses (1,397) (671) Interest and financing costs 1,589 2,613

Profit before taxation 79,325 73,664 Income tax expense 20,625 20,356 Profit for the period 58,700 53,308

Attributable to:

Shareholders of the Company 52,473 50,502 Non-controlling interests 6,227 2,806 Profit for the period 58,700 53,308

Weighted average number of shares outstanding Basic 548,320 538,009 Diluted 551,500 540,911

Earnings per share attributable to shareholders of the Company:

Basic earnings per share 0.10 0.09 Diluted earnings per share 0.10 0.09

See accompanying notes to the consolidated financial statements.

Unaudited Condensed Consolidated Statements of Comprehensive Income

For the quarter ended March 31 2011 2010

Profit for the period 58,700 53,308 Other comprehensive income (loss):

Change in fair value of available-for-sale financial assets (net of taxes of $nil and $106) (414) 1,459 Realized losses on disposal of available-for-sale financial assets (162) - transferred to net income Actuarial losses on defined benefit pension plans - - Total other comprehensive (loss) income for the period (576) 1,459

Total comprehensive income for the period 58,124 54,767

Attributable to:

Shareholders of the Company	51,897	51,961
Non-controlling interests	6,227	2,806
Total comprehensive income for the period	58,124	54,767

Attributable to shareholders of the Company

Accumulated other Non- Contributed comprehensive Retained controlling Note Share capital Treasury stock surplus income (loss) earnings Total interests Total equity

Balance at January 1, 2011 11 2,814,679 - 22,967 (1,637) 125,221 2,961,230 36,021 2,997,251 Total comprehensive (loss)

income for the quarter - - - (576) 52,473 51,897 6,227 58,124 - Dividends declared to Noncontrolling interests - - - - - - (3,622) (3,622)

Purchase of treasury stock - (5,870) - - - (5,870) - (5,870) Shares issued upon exercise of share options, for cash 2,080 - - - - 2,080 - 2,080

Estimated initial fair value of employee options exercised 813 - - - - 813 - 813 Shares issued upon exercise of warrants, for cash 666 - - - - 666 - 666 Options exercised, credited to share capital - - (813) - - (813) - (813) Share based payments - - 6,172 - - 6,172 - 6,172

Dividend paid to shareholders of the Company - - - - (27,741) (27,741) - (27,741)

2,818,238 (5,870) 28,326 (2,213) 149,953 2,988,434 38,626 3,027,060

Balance at March 31, 2011

Attributable to shareholders of the Company

Accumulated other Non- Contributed comprehensive controlling Note Share capital surplus income Deficit Total interests Total equity

Balance at January 1, 2010 2,671,634 17,865 2,227 (69,423) 2,622,303 26,144 2,648,447 Total comprehensive income for the quarter - - 1,459 50,502 51,961 2,806 54,767

Dividends declared to Noncontrolling interests - - - - - (1,286) (1,286)

Shares issued upon exercise of share options, for cash 5,594 - - - 5,594 - 5,594

Estimated initial fair value of employee options exercised 1,981 - - - 1,981 - 1,981

Share based payments - 6,947 - - 6,947 - 6,947 Stock-based compensation on Brazauro warrants & options - - - - - - - Options exercised, credited to share capital - (1,981) - - (1,981) - (1,981)

2,679,209 22,831 3,686 (18,921) 2,686,805 27,664 2,714,469

Balance at March 31, 2010

Note 2011 2010 For the quarter ended March 31

Cash flows generated from (used in):

Operating activities

Profit for the period 58,700 53,308 Items not affecting cash Provisions for asset retirement obligations 366 513 Depreciation and amortization 31,217 23,333 Unrealized foreign exchange loss 1,733 - Deferred tax recovery (7,494) (776) Gain on disposal of assets - (1,506) Gain on marketable securities (635) (1,112) Share based payments 7,352 6,947 Employee benefit expense 423 211 91,662 80,918

Changes in non-cash working capital 13 18,719 (18,479) 110,381 62,439

Investing activities

Purchase of mining interests and property, plant and (78,338) (47,300) Proceeds from the sale of mining interests and property, plant and 17 2,266 Proceeds from the sale of marketable securities 938 692 Investment purchases (1,318) - Increase in restricted cash (3,000) (2,121) Increase in restricted asset and other - (2,512) (81,701) (48,975)

Financing activities

Issuance of common shares for cash 2,746 5,594 Dividend paid to non-controlling interests (6,873) (1,286) Dividend paid to shareholders (27,741) - Purchase of treasury stock (5,870) - Long-term and bank debt proceeds 1,757 - Long-term and bank debt repayments (12,927) - (48,908) 4,308 Net (decrease) increase in cash and cash equivalents (20,228) 17,772 Cash and cash equivalents - beginning of period 314,344 265,369

294,116 283,141

Cash and cash equivalents - end of period

See accompanying notes to the unaudited consolidated financial statements.

Notes to the unaudited condensed consolidated financial statements (Expressed in thousands of U.S. dollars, unless otherwise stated)

1. General Information

Eldorado Gold Corporation (“Eldorado” or the “Company”) is a gold exploration, development, mining and production company. The Company has ongoing exploration and development projects in Turkey, China, Greece and Brazil. The Company acquired control of Sino Gold Mining Ltd. (“Sino Gold”) in December 2009, including its two producing mines, Jinfeng and White Mountain, as well as the Eastern Dragon development project. It also completed in July 2010 the acquisition of Brazauro Resources Corporation (“Brazauro”), whose main asset is the Tocantinzinho exploration and development project in Tapajós, Brazil.

Eldorado is a public company which is listed on the Toronto Stock Exchange, New York Stock Exchange and the Australian Stock Exchange and is incorporated and domiciled in Canada.

2. Basis of preparation and first-time adoption of IFRS

The Company prepares its financial statements in accordance with Canadian generally accepted accounting principles as set out in the Handbook of the Canadian Institute of Chartered Accountants (“CICA Handbook”). In 2010, the CICA Handbook was revised to incorporate International Financial Reporting Standards (“IFRS”), and require publicly accountable enterprises to apply such standards effective for years beginning on or after January 1, 2011. Accordingly the Company has commenced reporting on this basis in these condensed consolidated financial statements. In the financial statements, the term “Canadian GAAP” refers to Canadian GAAP before the adoption of IFRS.

These condensed interim consolidated financial statements have been prepared in accordance with IFRS applicable to the preparation of interim financial statements, including IAS 34 Interim Financial Reporting (“IAS 34”) and IFRS 1 Firsttime Adoption of International Financial Reporting Standards (“IFRS 1”). Subject to certain IFRS 1 transition elections disclosed in note 14, the Company has consistently applied the same accounting policies in its opening IFRS balance sheet as at January 1, 2010 and throughout all periods presented, as if these policies had always been in effect. Note 14 discloses the impact of the transition to IFRS on the Company’s reported balance sheet and comprehensive income, including the nature and effect of significant changes in accounting policies from those used in the Company’s consolidated financial statements for the year ended December 31, 2010.

These condensed consolidated interim financial statements do not include all of the information and footnotes required by International Financial Reporting Standards (“IFRS”) for complete financial statements for year-end reporting purposes. Results for the period ended March 31, 2011 are not necessarily indicative of future results. Any subsequent changes to IFRS that are reflected in the Company’s consolidated financial statements for the year ending December 31, 2011 could result in restatement of these interim consolidated financial statements, including the transition adjustments recognized on change-over to IFRS.

Upcoming changes in accounting standards

The following standards and amendments to existing standards have been published and are mandatory for Eldorado’s annual accounting periods beginning January 1, 2012, or later periods:

• IFRS 9 ‘Financial Instruments: Classification and Measurement’ – This is the first part of a new standard on classification and measurement of financial assets that will replace IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 has two measurement categories: amortized cost and fair value. All equity instruments are measured at fair value. A debt instrument is recorded at amortized cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest. Otherwise it is measured at fair value with changes in fair value through profit or loss. In addition, this new standard has been updated to include guidance on financial liabilities and derecognition of financial instruments. This standard is effective for years beginning on/after January 1, 2013.