Transaction Costs
From Open Risk Manual
Definition
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument.
IFRS 9 Scope
Transaction costs must be subtracted from fair value at initial recognition of an asset or liability[1] For purchased or originated credit-impaired financial assets, transaction costs must enter in the calculation of the credit-adjusted effective interest rate.
See Also
References
- ↑ IFRS Standard 9, 5.1.1
