Under current accounting standards share issue expenses must be treated as:

Question

Quizplus · Accepted Answer

Share issue expenses, also known as issuance costs, are expenses incurred in the process of issuing new shares. Under current accounting standards, these expenses are required to be treated as an expense and should be recognized immediately in the income statement. This treatment is consistent with the principle of matching expenses with the revenues they help to generate, which is a fundamental accounting concept. Therefore, the correct answer is B, an expense.

Under Current Accounting Standards Share Issue Expenses Must Be Treated