Fall 2013_Acc 3100_Ch 14

The exercise price is 25 per common share htl issuer

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Unformatted text preview: n stock is $30 per share. The exercise price is $25 per common share. HTL (Issuer) Cash 25,000,000 Equity – stock warrants 3,000,000 Common stock 1,000,000 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 Companies their financial assets and liabilities at fair value. The same market forces The that influence the fair value of an investment in debt securities (interest rates, economic conditions, 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.

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