Transaction costs are capitalised into the cost of an investment in another entity when:
A)the entity makes an irrevocable election to present subsequent changes in fair value in other profit or loss rather than other comprehensive income.
B)the entity makes an irrevocable election to present subsequent changes in fair value in other comprehensive income rather than in profit or loss.
C)the entity measures the investment at cost
D)the entity measures the investment at fair value

Question

Quizplus · Accepted Answer

The Answer of Transaction costs are capitalised into the cost of an investment in another entity when:
A)the entity makes an irrevocable election to present subsequent changes in fair value in other profit or loss rather than other comprehensive income.
B)the entity makes an irrevocable election to present subsequent changes in fair value in other comprehensive income rather than in profit or loss.
C)the entity measures the investment at cost
D)the entity measures the investment at fair value

Transaction Costs Are Capitalised into the Cost of an Investment