IAS 32 — Transaction costs to be deducted from equity
The IFRIC considered a request that it provide guidance on the extent of transaction costs to be accounted for as a deduction from equity in accordance with paragraph 37 of IAS 32 Financial Instruments: Presentation. In addition the submission requests guidance on how the requirements of IAS 32.38 to allocate transaction costs that relate jointly to more than one transaction should be applied.
The IFRIC agreed that it should not add the item to its agenda as it could be addressed more conveniently within the Annual Improvements process. In making this recommendation to the IASB, the IFRIC may suggest that the action of listing on a recognised exchange without issuing new equity (that is, a secondary offering of existing shares) was not an equity transaction because no new equity is introduced to the entity.
