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Cost of raising capital

Asked May 16, 2008, 02:10 PM — 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 official accounting literature exist about how to treat cost of raising capital? Should the costs be expenses or capitalized?

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tickle's Avatar
tickle Posts: 19,611, Reputation: 12451
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#2

May 16, 2008, 03:30 PM
We don't normally answer homework questions, as this obviously is.
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delite's Avatar
delite Posts: 202, Reputation: 10
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#3

May 23, 2008, 09:02 PM
The above nemtioned costs are amortized over a period of time,usually leass than 5yrs. Looks up FASBS pronouncements and new regulations which address these issues. Contact the aicpa near your location for info.
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