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Finance costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Finance costs

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 22, 2017 at 3:02 pm #378979
    annyz
    Member
    • Topics: 9
    • Replies: 7
    • ☆

    Dear Sir,

    Is commitment fee consider a FINANCE EXPENSES?
    i understand this is a FEE charged by a financial instittuion to secure a bank loan facility to a company. Do i need to classify as a FINANCE EXPENSES or part of Borrowing costs?

    Please advise.

    Thank you.

    March 23, 2017 at 9:18 am #379030
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Unless it’s a financial instrument carried at fair value through profit or loss, the transaction costs are added into or deducted from (as appropriate) the financial instrument on the occasion of initial measurement

    OK?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Finance costs’ is closed to new replies.

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