Which of the following share issue costs does not qualify as a deduction from share capital?
A) advertising of share issue
B) costs of prospectus issue
C) administration overheads
D) audit expenses associated with the issue of a prospectus

Question

Quizplus · Accepted Answer

Administration overheads do not qualify as a deduction from share capital, as they are not directly related to the issuance of shares. Advertising costs and prospectus issue costs are directly related to the share issuance process and can be deducted from share capital. Audit expenses associated with the issue of a prospectus are also related to the issuance of shares and qualify as a deduction from share capital.

Which of the Following Share Issue Costs Does Not Qualify