Deloitte
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Chapter 3 — Accounting Considerations Related to a Carve-Out Entity’s Statement of Comprehensive Income

3.7 Transaction-Related Costs

3.7 Transaction-Related Costs

Entities may incur certain transaction costs in connection with a carve-out transaction, such as accounting and tax fees, legal fees, investment banking fees, and employee benefit costs. These transaction-related costs should be analyzed for timing of recognition and allocation to carve-out entities in accordance with the guidance in Section 3.1. If they are contingent on the closing of the carve-out transaction, entities may apply the guidance in ASC 420 and ASC 805-20-55-50 and 55-51 by analogy. In accordance with this guidance, the costs should not be recorded until closing because of the uncertainties involved (in a manner consistent with the accounting for costs associated with the acceleration of vesting of share-based payment awards as described in Section 3.4.1.2).