Option premium in the light of accounting law – a discussion paper

• Authors: Ryba, Adrian

Abstracts

EN

This article demonstrates that an option premium cannot be recognized as an entity's financial liability. According to accounting law, a premium at the date of the option contract should be recognized as accrued income. The article also shows that the effects of revaluations of derivatives (financial instruments), according to accounting principles and economic profit definitions, should not be recognized as income at the balance sheet date. It should be recognized as revaluation reserve in equity or only presented in notes to financial statement in accordance with the basic function of accounting.

Keywords

EN

premia opcyjna; prawo bilansowe; instrumenty finansowe; accounting law; financial instruments; Option Premium

• Publisher: Stowarzyszenie Księgowych w Polsce (SKwP), Zarząd Główny, Rada Naukowa
• Journal: Zeszyty Teoretyczne Rachunkowości
• Year: 2010
• Volume: 2010(54(110))
• Pages: 153-162

Contributors

author

Ryba, Adrian