Share issuance cost — OpenTuition Forums

KKhai5y ago

Hi, I have a question relating to the share issuance cost. For example: A company issue 5 shares of $1 at a price of $3 per shares. The cost relates to the issue is 1$. How would the cost be treated in the issue? Is it gonna be a deduct from the share premium? Thanks

P2-D2Tutor5y ago#1

Hi, Yes, the costs directly attributable to the share issue would be deducted against the share premium account as opposed to being expensed through profit or loss. Thanks

KKhai5y ago#2

Thank you for your answer