IAS 33Chapter 6Lesson 2
Options and warrants: the treasury share method
Step 1 of 6Learning objectives
Go deeper+3 deeper insights · +1 point of attention
For options or warrants, exercise is assumed and the assumed proceeds are treated as received from shares issued at the average market price: only the difference between the shares issued and those so issued at the average price is an addition with no consideration.
50 minNot started
Learning objectives
- Apply the treasury share method to options and warrants.
- Recognise when options are dilutive and when they are not.
- Place the treatment of purchased options, written put options and employee options.