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Hi Mr. MikeLittle
Can you let me clear this question? You have recently answered this question and said that for the initial recognition we can add transaction cost. but it was added to the amount which will be shown in BS. 195000+2000=197000 why?
On 1 January 20X3 Wincarnis purchased 30,000 $1 shares in a listed entity for $5 per share. Transaction costs
were $2,000 and Wincarnis elected to recognise the shares at fair value through other comprehensive income.
At the year end of 31 December 20X3 the shares were trading at $6.50.
At what amount will the shares be recognised in the statement of financial position of Wincarnis at
31 December 20X3?
and in this question the answer not 195000 but 197000. is it wrong?Now I have always believed that, following initial recognition where transaction costs are included, all subsequent measurements were at fair value without the transaction costs
So it looks like I could be wrong (about which I apologise … sorry)
But if you have the answer in front of you, why are you asking me in the first place?
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