Which statement is correct about the treatment of transaction costs?

a) Transaction costs are always included in the investment cost
b) Transaction costs for a subsidiary are capitalized into the purchase price.
c) Transaction costs for investment classified as a fair-value-through-profit-and-loss investment are expensed.

Question

24-06-2024
Business

Answered

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Which statement is correct about the treatment of transaction costs?

a) Transaction costs are always included in the investment cost
b) Transaction costs for a subsidiary are capitalized into the purchase price.
c) Transaction costs for investment classified as a fair-value-through-profit-and-loss investment are expensed.

Sagot :

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