The standards as they relate to the accounting for investments, differ under PE GAAP and IFRS.Which of the following statement(s) best describe(s) the treatment of transaction costs?

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Under IFRS, transaction costs are generally required to be capitalized, meaning they are included as part of the cost of the investment. However, if the investment is accounted for under the fair value through net income model, transaction costs are expensed as incurred. PE GAAP also generally requires that transaction costs be capitalized, but they are expensed whenever cost-based measures, such as cost or amortized cost, are used. Therefore, statement (a) is true for IFRS and statement (c) is true for PE GAAP. However, statement (d) is incorrect as it includes statement (b), which is not true for either method of accounting.

The Standards as They Relate to the Accounting for Investments