CG12316 - Options: exercise of an option

If the single transaction is a sale by the grantee the acquisition cost of the grantor is

• the consideration for the transfer of the asset subject to the option, less
• the consideration given for the put option.

The grantee is effectively treated the same.

• the consideration received by the grantee is the full consideration given for the transfer of the asset
• the consideration given by the grantee for the put option is treated as an incidental cost of disposal.