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Critically analyze the accounting treatment of acquisition related costs in a business combination. For your critical...

Critically analyze the accounting treatment of acquisition related costs in a business combination. For your critical analysis, you could compare with how acquisition related costs are accounted for when a company purchases property plant and equipment.

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Acquisition related costs are costs which an acquirer incurs to effect a business combination and are excluded from the consideration transferred and expensed when incurred except costs to issue debt or equity securities which are to be recognised in accordance with Ind AS 32 and Ind AS 109.On the balance sheet, these assets appear under the heading “Property, plant, and equipment”. When a company acquires a plant asset, accountants record the asset at the cost of acquisition (historical cost). When a plant asset is purchased for cash, its acquisition cost is simply the agreed on cash price.

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