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-   -   Cost of raising capital (https://www.askmehelpdesk.com/showthread.php?t=216663)

  • May 16, 2008, 02:10 PM
    accounting2008
    Cost of raising capital
    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?
  • May 16, 2008, 03:30 PM
    tickle
    We don't normally answer homework questions, as this obviously is.
  • May 23, 2008, 09:02 PM
    delite
    The above nemtioned costs are amortized over a period,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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