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Under Ind AS 103, acquisition-related costs (advisory, legal, due diligence, finder's fees, stamp duty connected to the combination) are:
ACapitalised as goodwill
BExpensed in the period the services are received, except costs to issue debt/equity which follow Ind AS 32/109
CCapitalised as part of consideration transferred
DAdjusted against the bargain purchase capital reserve
Answer & Solution
Correct answer: B. Expensed in the period the services are received, except costs to issue debt/equity which follow Ind AS 32/109
Paragraph 53 expensing rule: acquisition-related costs are expensed when incurred and services received. The one carve-out: costs to issue debt or equity securities are accounted under Ind AS 32 / Ind AS 109.
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