Underwriting and other share issue costs paid to a broker or a financial institution should be reported in a balance sheet as:
A)a liability
B)an asset
C)an increase in retained earnings
D)a reduction of share capital.

Question

Quizplus · Accepted Answer

Underwriting and other share issue costs are typically deducted from the share capital or additional paid-in capital, reducing the amount of equity reported on the balance sheet.

Underwriting and Other Share Issue Costs Paid to a Broker