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Transaction cost under IFRS3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Transaction cost under IFRS3

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 23, 2022 at 10:22 am #649180
    joey0214
    Participant
    • Topics: 3
    • Replies: 8
    • ☆

    Hi sir, based on IFRS3 we can only capitalize issuing debt or equity securities cost, other than that it will be expensed off. How about the cost of acquire the subsidiary share (cost of register for the share)? It should be expensed off or capitalize?

    February 24, 2022 at 9:39 am #649253
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3436
    • ☆☆☆☆☆

    Transaction costs on purchase of subsidiary should be expensed. The standard is concerned with the big costs like legal fees. Share registration would not be material.

    February 24, 2022 at 11:28 am #649267
    joey0214
    Participant
    • Topics: 3
    • Replies: 8
    • ☆

    Understand….thanks sir

    February 25, 2022 at 9:41 am #649321
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3436
    • ☆☆☆☆☆

    🙂

  • Author
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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Transaction cost under IFRS3’ is closed to new replies.

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