Share issue transaction costs

Share issue transaction costs are costs incurred by a company in connection with issuing new shares. Share issue transaction costs can include costs such as legal fees, accounting fees, printing costs, and broker fees.

Share issue transaction costs are usually required to be recognized as a deduction from equity (FRS 102 s22.9 and IAS 32 s37) and are usually offset against share premium.

By Mohammed Haque

Mohammed is a chartered accountant (ICAEW) with many years of experience in dealing with complex audit, accounting and tax matters.