Where Equity Instruments Are Issued as Part of the Consideration

question 29

True/False

Where equity instruments are issued as part of the consideration in a business combination, any costs associated with issuing such equity instruments are included as part of the cost of the business combination.

---

Definitions:

Gift Certificates

Vouchers or tokens that can be exchanged for goods or services at specific retailers or establishments.

Redeemable

Refers to a financial instrument or security that can be converted into another form, often cash or another type of asset, at the holder's option or upon a specific event.

Unredeemed Certificates

Financial or legal documents representing a right or obligation that have not yet been claimed or exercised by the holder.

Closing Entry

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby resetting the temporary accounts for the next period.