Hello All,
I have the below query and request your views on that.
If a company incurs stamp duty and other registration costs for the transfer of title of assets acquired in a business combination, will it be treated as an acquisition cost?
My initial view is, that it should form part of it, but want to check with a larger group.
Para 53 of IFRS 3
Acquisition‑related costs are costs the acquirer incurs to effect a business
combination. Those costs include finder’s fees; advisory, legal, accounting,
valuation and other professional or consulting fees; general administrative
costs, including the costs of maintaining an internal acquisitions department;
and costs of registering and issuing debt and equity securities. The acquirer
shall account for acquisition-related costs as expenses in the periods in which
the costs are incurred and the services are received, with one exception
Acquisition cost IFRS 3
Re: Acquisition cost IFRS 3
I also think that these costs fall under IFRS 3.53 because they are costs 'the acquirer incurs to effect a business combination'
Re: Acquisition cost IFRS 3
PS. is this a business combination where the acquirer and acquiree become one legal entity?
Re: Acquisition cost IFRS 3
Thanks Marek
Yes, it is, however will the answer if different if its an acquisition of a sub
Yes, it is, however will the answer if different if its an acquisition of a sub
Re: Acquisition cost IFRS 3
the answer would be the same, I was just curious about the nature of these costs