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Unformatted text preview: n stock is $30 per
share. The exercise price is $25 per common share.
Equity – stock warrants
Paid-in capital – common stock
27,000,000 1,000,000 warrants × $25
1,000,000 warrants × $25
$6,000,000 ÷ 2
$6,000,000 ÷ 2 14-33 Option to Report Liabilities at Fair Value
Companies have the option to value some or all of
their financial assets and liabilities at fair value.
The same market forces
that influence the fair
value of an investment
in debt securities
risk, etc.) influence the
fair value of liabilities. 14-34 U. S. GAAP vs. IFRS
International accounting standards are more restrictive
than U.S. standards for determining when firms are
allowed to elect the fair value option. The fair value option may be
elected by the firm. Although U.S. GAAP guidance
indicates that the intent of the
fair value option under U.S.
GAAP is to address these sorts
of circumstances, it does no...
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This note was uploaded on 11/19/2013 for the course ACCOUNTING 3100 taught by Professor He during the Fall '10 term at CUNY Baruch.
- Fall '10