According to AASB 3 Business Combinations,the appropriate accounting treatment for the costs of issuing shares by the acquirer as part of a business combination is to record them as a debit to:
A)share capital.
B)share issue reserve.
C)retained earnings.
D)acquisition expenses.

Question

Quizplus · Accepted Answer

The costs of issuing shares are not considered part of the acquisition cost and should be deducted from the share capital, reducing the amount credited to share capital.

According to AASB 3 Business Combinations,the Appropriate Accounting Treatment for the Costs