Transaction costs (financial instruments) are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability (see IAS 39 paragraph AG13). An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument.
Transaction costs (financial instruments) are specifically discussed in IAS 39 Financial Instruments: Recognition and Measurement.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
