CFA CFA Level 1 How do one account for warrants emission in the balance sheet?

How do one account for warrants emission in the balance sheet?

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      Agreed. But still, that doesn’t seem right to me.

      It is not even a financing operation per se. So I can deleverage as much as I want, without even requiring equity financing?

      Am I the only one bothered here?

      Thanks for your reply @vincentt

    • Avatar of vincenttvincentt
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        • CFA Level 3
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        Since, Asset = Liability + Equity

        Step 1: add cash to asset
        Step 2: add cash to equity (retained earnings to be specific)

        That way it would balance out.

      • Avatar of vincenttvincentt
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          The following formula should help you understand better.

          RE = Beginning RE + Net Income – Dividends

          Apart from RE in the “Equity” section, there is also Common Stock.

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