The accounting for treasury stock retirements under IFRS requires

Question

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Under IFRS, when a company retires its treasury stock, any excess of the cost of treasury stock over its par value should be charged to the original accounts of the stock issuance that led to the accumulation of the treasury stock. This means that if the original transaction was a sale of common stock for an amount above its par value, the excess amount should be charged to the paid-in capital account. If the original transaction was a sale of preferred stock or debt for an amount above its par value, the excess amount should be charged to the retained earnings account. Therefore, option B is the correct answer.

The Accounting for Treasury Stock Retirements Under IFRS Requires