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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 9 – Transaction costs when recognizing equity instrument and FA
Dear Sir,
I understand the following recognition method regarding transaction costs. Could you please confirm if it is correct:
Equity instruments :
– Held for trading – FVTPL: Transaction cost will be expensed
– Not held for trading – FVTOCI: Transaction cost will added to cost of investment
Financial assets:
– Amortised Cost: Transaction cost will be added to cost of investment.
– FVTOCI: Transaction cost will be added to cost of investment.
– FVTPL: Transaction cost will be expensed
Perfect.
