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Share issuance cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Share issuance cost

  • This topic has 2 replies, 2 voices, and was last updated 1 year ago by buondaiqua.
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  • February 28, 2021 at 3:10 pm #612141
    buondaiqua
    • Topics: 22
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    • ☆

    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

    March 2, 2021 at 8:45 pm #612829
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6119
    • ☆☆☆☆☆

    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

    March 3, 2021 at 10:46 am #612979
    buondaiqua
    • Topics: 22
    • Replies: 18
    • ☆

    Thank you for your answer

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