Hi,
Is there any logic or concept behind expensing of transaction cost when using Fair value through
P and L and including/excluding it when using fair value through OCI?
However, I understood the exclusion/inclusion in case of amortized cost because in this way the transaction costs will be spread throughout the life of asset/liability.
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IFRS 9 Financial instruments
4y ago#1Not much logic. I think I originally conceptualised FVPL as current assets and FVOCI as non-current assets. But that's not always true. :)
If I remember the rule was originally from US accounting.
So basically in this particular topic they are following a rules based approach and we simply have to follow the rule?
4y ago#3I'm afraid so! :)
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