› CFA › CFA Level 1 › How do one account for warrants emission in the balance sheet? Search for:Search Button CFAFRMCAIACareersLounge GeneralLevel 1Level 2Level 3 How do one account for warrants emission in the balance sheet? Add A Reply Login Sign Up This topic has 3 replies, 2 voices, and was last updated Jun-177:43 pm by vincentt. Author Posts huwabaraParticipant 04 Jun 2017 at 7:32 pm Up4:: 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 vincenttParticipant CFA Level 3 04 Jun 2017 at 7:11 pm Up1:: 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. vincenttParticipant CFA Level 3 04 Jun 2017 at 7:43 pm Up1:: 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. Author Posts Viewing 2 reply threads You must be logged in to reply to this topic. Log In Username: Password: Keep me signed in Register Log In