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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Share issuance cost
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
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
Thank you for your answer