I AS 32

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October 22, 2017 at 1:16 pm #412834
myacca1990
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“Costs of issuing debt instruments and equity shares are covered by IAS 32 which states that such costs should reduce the proceeds from the debt issue or the equity issue”
The above paragraph is taken from BPP study text.What exactly did it mean by reducing the proceeds from the debt issue?
October 22, 2017 at 8:26 pm #412873
MikeLittle
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When a $50,000 loan note is issued and there are issue costs of $1,000, the double entry would be:

Dr Cash $49,000
Dr Issue costs $1,000
Cr Loan $50,000

OK?
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