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What is the accounting treatment of legal fees incurred relating to a stock issuance?

drewandjamiegibson asked:


Need to know the accounting treatment for financial reporting purposes. Please also provide relevant guidance on this matter.

Sara

Tags: Accounting, Relevant Guidance, Stock Issuance

This entry was posted on Friday, February 5th, 2010 at 7:05 pm and is filed under Accounting. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

One Response to “What is the accounting treatment of legal fees incurred relating to a stock issuance?”

1. Sandy says:

   February 6, 2010 at 8:28 pm

   Share capital
   Initial measurement of share capital reflects the net proceeds from issue, defined as the fair value of the consideration received, net of transaction costs directly attributable to the equity transaction [IAS32R.35]

   Shares issued for cash are recognised at the amount of the net cash proceeds.