Transaction costs are usually included in the carrying value of financial liabilities.

Question

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Transaction costs related to the financial liabilities are usually included in the carrying value of those liabilities in accordance with accounting standards such as International Financial Reporting Standards (IFRS). This means that the costs of issuing or acquiring those liabilities, such as fees paid to banks or legal advisers, are added to the initial amount recognized and subsequently amortized over the term of the liability.

Transaction Costs Are Usually Included in the Carrying Value of Financial