Exam preparation question 1
Retained earnings
Answers at back
1250 draft
200 issue costs
(266) eff int
1184 retained earnings balance at 31 dec 20X8
Question : why are issue costs added ?
Ask the Tutor ACCA FR
Chapter 11 financial instruments
3y ago#1Hi,
The issue costs have been treated incorrectly, where they have expensed them through profit or loss, thus reducing the profit for the year. To correct the error we need to remove the expense created and therefore add it back.
Thanks
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