+1-415-670-9189
info@expertsmind.com
Possibilities for recording liability
Course:- Cost Accounting
Reference No.:- EM13298393




Assignment Help
Assignment Help >> Cost Accounting

I have a liability that was created by the exercise of a put option on a warrant. The warrant had a strike price of $0.001 and the put has a value of $2.7M. The put option first was available in April 2007 and was exercised in April 2009. In recording the liability, I categorized it as an expense.

Although the liability and corresponding expense should have been accrued since April 2007, it was not recognized until April 2009. My question is, was it proper to record the liability as an expense when the entry was made?

Are there any other possibilities for recording this liability?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
Prepare a table like Exhibit 7.14. Find the costs of ordering and carrying inventory for each of the following number of annual orders: 40 orders, 50 orders, 60 orders.
Nakashima Gallery had the following petty cash transactions in February of the current year. Feb. 2 Wrote a $ 400 check, cashed it, and gave the proceeds and the petty cashbox
Corporate Accounting (BBAC401) - Prepare a statement of profit or loss and other comprehensive income for Simpsons Ltd for the year ended 30 June 2018, according to the requir
Define the term "opportunity cost." How may this cost be relevant in a make-or-buy decision? What is the decision rule in deciding whether to sell a product or process it
Justify your answer by describing what is meant by the term depreciation, the role and process of recognizing depreciation in accounting reports, and by identifying the acco
Using the information in Table 2 developed by the team of engineers and sales managers, together with the customer criteria, determine which components of the boat are most
Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the City of Martinville for the year ended June 30, 2012. Please make sure you end with the Fu
How might this change influence their company brand or the customer's perception of their brand? Will they be appealing to a different market by offering yacht anchors?