Ask Experts Questions for FREE Help !
Ask
    boz's Avatar
    boz Posts: 1, Reputation: 1
    New Member
     
    #1

    Jul 10, 2009, 02:05 PM
    Accounting for capital raising costs
    If in the previous financial year we engaged consultants and incurred other related expenses for raising capital but unsuccessful in raising capital, can the costs be offset against equity.

    Thanks,
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
     
    #2

    Jul 10, 2009, 11:11 PM

    You have to be more specific about the nature of the consultancy offered, the amount of capital to be raised and the consequences of unsuccessful raising of capital. I am sure you know that the transaction must satisfy the recognition and measurement criteria as defined in the Framework.
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
    Ultra Member
     
    #3

    Jul 13, 2009, 06:31 PM

    Why create difficulties and complications.
    Just charge CONSULTANTS FEES when they are paid.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #4

    Jul 13, 2009, 09:13 PM
    Once an activity has concluded and lost its economic benefit it should be written off. Such an item as you described might be an extraordinary expense so that it isn't confused with being a recurring expense.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cost of raising capital [ 2 Answers ]

Company is raising capital and it incurred some lawyers fees to write a contract for investors and have hired a consultant to find investors. Can I offset the cost of the consultant and legal fees against the capital raised and how would I treat this expense on the balance sheet? Is there any...

Accounting for direct acquisition costs of capital [ 1 Answers ]

Can you capitalize the direct cost (commissions) of bringing new members into a country club?

Accounting Sales Price Variable Material Costs Fixed Monthly Costs [ 0 Answers ]

I have no clue where to begen with this, I could use some help! Its due on Friday night and the teacher as done nothing to help here. I'm totally lost. The individual portion of this assignment is for each person to produce his/her own solution to the following. Claire’s Antiques has fixed cost...


View more questions Search