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IFRS 9 – Transaction costs when recognizing equity instrument and FA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 9 – Transaction costs when recognizing equity instrument and FA

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • May 22, 2020 at 11:15 am #571557
    Vu
    Member
    • Topics: 42
    • Replies: 87
    • ☆☆

    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

    May 22, 2020 at 3:52 pm #571591
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3443
    • ☆☆☆☆☆

    Perfect.

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