In purchase accounting, costs of registering equity securities issued as consideration cannot be added to the cost of the acquisition.

Question

Quizplus · Accepted Answer

In purchase accounting, costs related to issuing or registering equity securities, such as underwriting, accounting, and legal fees, are not capitalized as part of the acquisition cost. Instead, they are typically expensed as incurred.

In Purchase Accounting, Costs of Registering Equity Securities Issued as Consideration