CA Sachin Rastogi (Audit/IFRS Manager) (338 Points)
26 June 2012What is the IFRS treatment for transaction costs in the following cases
Appreciate if you could give the logic as well for supporting your answers.
CA Sachin Rastogi
(Audit/IFRS Manager)
(338 Points)
Replied 04 July 2012
Finally i got the answer to my own querry which is as follows:
1. Transaction cost on acquisition of associates and JV is added to the cost of the investment.
2. Transaction cost on acquisition of subsidiaries is expensed out in the income statement as required under revised IFRS 3.
3.Transaction cost on acquisition of NCI shall be treated under equity as it is transaction cost relating to equity components are considered under equity in line with IAS 32.
Thanks
CAclubindia
