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Exceptions to the assumption of net cash settlement if the counterparty has the choice of net cash settlement or share settlement can be overcome if the economic value of the share settlement alternative is significantly greater (say at least 10%) than the net cash settlement alternative or if one of the cash settlement alternatives is fixed, capped, floored or collared. These differences in economic value could result in disregarding the uneconomic cash settlement alternative. This difference would have to be evaluated at each balance sheet date as part of the classification reevaluation process required under ASC 815.

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