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Incidental costs of acquisition such as legal, accounting, valuation and
other professional fees should be written off as expenses through profit or
loss as incurred. written in kaplandoes means it will be treated as expense while preparing consolidated st. of p/l
or its talking about parent co’s individual st of p/l from there it has to be reducted,as the expense incurred….which oneI presume that you are talking about IFRS 3, in which case yes, all the acquisition costs are expensed through profit or loss of the parent, and therefore the group accounts. Just note that share issue costs will reduce the share premium account and are not taken through profit or loss.
Thanks
so the parent company profit for the year already remain adjusted for acquisition cost as its already treated in the parent co’s p/l…..so the balance sheet. Retained earnings already adjusted at the balance sheet…….so no further reduction is required right while preparing consolidated financial statements.
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