When Bonds and Other Debt Are Issued,costs Such as Legal

When bonds and other debt are issued,costs such as legal costs,printing costs,and underwriting fees are referred to as debt issuance costs (called transaction costs under IFRS) .If Brown Imports prepares its financial statements using IFRS:

A) The increase in the effective interest rate caused by the transaction costs is reflected in the interest expense.
B) The decrease in the effective interest rate caused by the transaction costs is reflected in the interest expense.
C) The transaction costs are recorded separately as an asset.
D) The recorded amount of the debt is increased by the transaction costs.