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11. Which of the following statements is TRUE? a. Transaction costs directly related to the issue of debt instruments are deducted from the fair value

11. Which of the following statements is TRUE?

a. Transaction costs directly related to the issue of debt instruments are deducted from the fair value of the debt on initial recognition and are amortized over the life of the debt as part of the effective interest rate. Directly attributable transaction costs incurred issuing equity instruments are deducted from revenue.

b. The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair value.

c. According to IFRS #3: Revised, cost directly attributable in effecting the business combination (e.g., finders fee and other direct cost) must be charged to share premium. d.

In net asset acquisition, gain on bargain purchase is recognized in the Profit or Loss of the acquirer (after reassessment) if the consideration transferred is more than the fair value of net assets acquired.

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