S-Space College of Business Administration/Business School (경영대학/대학원) Institute of Management Research (경영연구소) 경영논집 경영논집 vol.41 (2007)
신주인수권부 사채의 회계처리에 대한 소고
A Study on the Accounting Treatment for Bonds with Stock Warrants
- Issue Date
- 서울대학교 경영대학 경영연구소
- 경영논집, Vol.41 No.1/4, pp. 1-17
- Accounting standards acknowledge that detachable warrants and nondetachable
warrants are significantly different in nature. However, accounting treatments for
nondetachable warrants are, in essence, the same as accounting treatment for
detachable warrants. The questions arises whether the allocation of the value of the
warrants should be allocated to the exercise privilege. It is reasonable that the issuance
of bonds with detachable warrants involves two securities, one a debt security, which
will remain outstanding until maturity, and the other a warrant to purchase common
stock. Due to the fact that separable instruments exists at the time of issuance,
separate treatment is justified. However, the entire proceeds from nondetachable
warrants should be recorded as debt.
Although the legal forms are different, sufficient similarities of substance exist to
support the same accounting treatment, that is, inseparability per se is not a sufficient
basis for restricting allocation between identifiable components of a transaction.
Therefore, to deny recognition of value to the conversion feature merely looks to the
form of the instrument and does not deal with the substance of the transaction.