alleryStart learning →The costs of a share issue that was later abandoned are what?
ADeducted from equity
BCarried forward as an asset
CAllocated to existing reserves
DRecognised as an expense
Answer & Solution
Correct answer: D. Recognised as an expense
With no equity transaction completed, there is nothing to deduct the costs from, so they are expensed.
Keep practising Ind AS 32 Financial Instruments: Presentation
Browse all Ind AS 32 Financial Instruments: Presentation questions for CA Final, or explore more Financialreporting topics.
Related questions
Pro rata rights at a fixed price in any currency are?Which are 'entities' under Ind AS 32?Must a financial instrument contract be written?On reclassifying equity to liability, difference goes to?Puttable equity must sit in which class?Puttable equity must entitle holders to?A master netting arrangement provides?Is a sinking fund offset against the debentures?