Good day, I would like to enquire as to the logic and treatment of transaction costs incurred in the acquisition of a subsidiary i.e. valuation fees.
Furthermore will like to enquire of the logic and treatment of costs related to the issue of shares or debt in respect of the acqusition.
Many thanks
Corbertt
Ask the Tutor ACCA SBR
Consideration of Subsidiary
9y ago#1Hi,
Any fees on acquisition of a subsidiary are expensed through profit or loss, they canot be capitalised as they do not give any future economic benefit.
Any share issue costs are recorded against share premium as there isn't really much use for this account so we may as well use it for these costs.
You're more likely to see these issues in F7.
Thanks
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