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Hi,
For Financial liabilities measured through amortised cost, the standard states that transaction costs are expensed through p/l. Does this mean that for a 10 year loan, if brokerage of $30,000 was incurred the whole amount would be debited to p/l on initial recognition or would it subsequently be expensed throughout the life of the liability in an amortised cost basis?
Assume loan is 500 and transaction costs are 30.
On Day 1:
Dr Cash Cr Loan 500
AND
Dr P&L Cr Cash 30So, expensed on Day 1.
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