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Sir, when you worked example 2 (Norman), you capitalised the transaction cost and that was well understood but at later part of that same example when the Financial asset was sold, you then said (at the 26th minute), “if there were any transaction cost it would have been accounted for separately in P&L”. That statement got me confused.
Please, were you referring to the same transaction cost that was capitalised, or do we have different types of transaction costs? Could you please explain whether or not it’s the same transaction cost and why? Thank you.Apologies if lecture confused you. Stick to the rule below:
Financial assets should Initially be recognised at fair value plus transaction costs, unless classified as fair value through profit or loss , where transaction costs are immediately recognised through profit or loss.
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