Possibilities for recording liability

Reference no: EM13298393

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?

Reference no: EM13298393

Questions Cloud

Credentialing issues-member information : Can anyone explain each one and give the sites of each information and categories. Credentialing issues, Member information (for providers), Pre-authorization forms, Coverage issues (for providers)

Solve for steady-state concentration of both compounds : Atrazine, a neutral triazine herbicide manufactured by the Ciba-Geigy group, undergoes biological and chemical decomposition to formhydroxy-atrazine. a).Assuming a pseudo first order decay constant of 0.01/day for atrazinr and 0.005/dayfor hydroxy..

Explain what is the volume of hot air : The temperature inside a balloon is raised from 25.0 degrees C to 250.0 degrees C. If the volume of cold air was 10.0 L, what is the volume of hot air

What is their total energy at the top of the hill : A sled and rider with a combined weight of 67 kg are at rest on the top of a hill 26 m high. What is their total energy at the top of the hill

Possibilities for recording liability : Are there any other possibilities for recording this liability - 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..

Explain sum of the coefficients when the following equation : What is the sum of the coefficients when the following equation is balanced using the lowest, whole numbered coefficients

How far from the girls intial position do they meet : A 40-kg firl and an 8.4-kg sled are on the surface of a frozen lake, 15 m apart. By means of a rope the girl exerts a 5.2-N force on the sled, How far from the girl's intial position do they meet

Assume propagation speed of the signal in the medium : The distance between two stations in a 10 Mbps LAN using CSM/CD multiple access method is 2,000 meters. Station A sends a long frame first and three micro seconds later, C starts sending a long frame

Explain what is the enthalpy for reaction 1 reversed : What is the enthalpy for reaction 1 reversed. Reversed equation: CO2-->CO+(1/2)O2 Express answers in kJ per mole.

User Account

All Pages