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From course:

Accounting for Business Combinations

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Question:

Share premium/Additional paid-in capital from the related issuance not enough to absorb cost of issuing equity instruments/share issuance cost

Author: you nice keep going!



Answer:

▪ excess should be debited to 'Share Issuance Costs' ▪ treated as a contra shareholders' equity account as a deduction in the ff order of priority: 1. Share premium from previous share issuance 2. Retained Earnings with appropriate disclosure


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