The appropriate accounting treatment for incremental costs directly attributable to an equity transaction that would otherwise have been avoided is to recognise it as:
A)a deduction in equity.
B)an addition in equity.
C)an expense in profit or loss.
D)a liability.

Question

Quizplus · Accepted Answer

Incremental costs directly attributable to an equity transaction should be recognized as a deduction in equity, as they are costs that would not have been incurred if the equity transaction had not taken place.

The Appropriate Accounting Treatment for Incremental Costs Directly Attributable to an Equity