Where equity instruments are issued as part of the consideration in a business combination, any costs associated with issuing such equity instruments are included as part of the cost of the business combination.

Question

Quizplus · Accepted Answer

According to IFRS 3 (Business Combinations), costs associated with issuing equity instruments are not included as part of the cost of the business combination. Instead, they are recognized directly in equity as a deduction from the proceeds of the equity instruments issued.

Where Equity Instruments Are Issued as Part of the Consideration