Query..Please help?

CA Yogesh (Sr. Executive (F&A)) (213 Points)

13 June 2011  

I have read entire IAS 32 & 39, but I am confused in the following 2 DOUBTS :

1) Transaction cost on issue of equity shares is deducted from Equity..But what would be effect of transaction costs on issue of bonds, loan note, etc..??

2)Financial Liability: Treatment of difference between Amt taken as loan & fair value!!Eg 800 lacs i took as loan, but using market rate its present value is 676 lacs..so how to treat the diff. amt..?

Please help!!