Is cost of issuing share in aquiring a subsidiary charged to Investment or OCI. Please let me have your response asap.

Answer 1

If Parent acquire Subsidiary and paid shares in consideration its called Share consideration.

The entry will be.

Debit : Investment

Credit : Ordinary Share Capital
Credit : Share Premium.

Ordinary Share Capital will be calculated as : No of Shares x Par value.

Hope this helps !!

Answer 2

Under IFRS 3, acquisitions costs are expensed to profit or loss (Kaplan)

Answer 3

It should be charged to P/L as an expense. If unrealised gains/losses then it goes to OCI e.g. foreign subsidiary currency translations issuing shares in foreign currency