The Accounting Treatment of Derivatives on a Reporting Entity's Own Shares - Adding the New Category 'Equity Derivatives' (Paperback)

The distinction between liability and equity instruments and, in particular, the accounting treatment of derivatives on shares is controversially discussed between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). In this dissertation, numerical examples of these instruments are presented, such as warrants, capital increase agreements, and share repurchase programs. Moreover, a set of criteria (e.g., relevance, reliability, comparability, liquidity, and solvency concerns) is posted to assess whether the current rules new IASB/FASB approaches, or a new method proposed by the author are the most appropriate ones. The accounting treatment of debt and equity instruments was one of the author's main tasks at Ernst & Young between 2003 and 2008. Dissertation.