If Shares Are Issued as Part of the Consideration Paid

question 9

Multiple Choice

If shares are issued as part of the consideration paid, transactions costs such as brokerage fees may be incurred. Under AASB 3/IFRS 3 Business Combinations, the appropriate accounting treatment for such costs in the records of the acquirer is a debit to:

• A) cash.
• B) investments.
• C) share capital.
• D) acquisition expenses.

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Definitions:

Pulmonary Circuit

Circulatory pathway between the lungs and the heart.

Systemic Circuit

The part of the cardiovascular system that circulates blood between the heart and the rest of the body, except for the lungs.

Systole

The phase of the cardiac cycle during which the heart muscle contracts, resulting in the ejection of blood into the systemic circulation.

Ventricular Excitation

The process of electrical activation of the ventricles of the heart, leading to their contraction.