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Stamp duty paid for transferring land that is part of a business combination should be:
ACapitalised under Ind AS 16 like a separate land purchase
BCapitalised to land within the combined entity
CTreated as acquisition-related cost — expensed in the period incurred under Ind AS 103
DCapitalised to goodwill
Answer & Solution
Correct answer: C. Treated as acquisition-related cost — expensed in the period incurred under Ind AS 103
When stamp duty is incurred to effect the business-combination transfer (not to acquire land outside a BC), it is an acquisition-related cost under paragraph 53 and is expensed. The Ind AS 16 capitalisation rule applies only when the asset is acquired *separately* — not as part of a BC, where all assets and liabilities are measured at FV.
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