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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Evolve – Bonus Issue Sept 2016
Sir in this question part a there is financial liability due to a put option making the rights similar to a redeemable loan/share.
But if the right of receiving cash is not exercised by the last date then what will we do for that? Will we reverse the financial liability by crediting profit?
Hi,
If it is not exercised, then yes we’d just reverse the entry.
Thanks
