The costs of issuing shares effectively:
A) reduce the proceeds from the share issue.
B) increase the proceeds from the share issue.
C) are borne by the underwriters of the share issue.
D) are recognised as a deferred asset on the statement of financial position.

Question

Quizplus · Accepted Answer

The costs of issuing shares, which may include underwriter fees, legal fees, and other expenses, are deducted from the proceeds of the share issue. This reduces the net amount of funds received by the company.

The Costs of Issuing Shares Effectively