Fair value adjustments and some quirky accounting rules | Value Investing News

Fair value adjustments and some quirky accounting rules

  • For example, under “Other income (expense)”, the entire $4.591 million under “Loss on Financial Instruments” consists of fair value adjustments.
  • $2.569 million of the $4.591 million consists of a mark-to-market adjustment on the fair value of warrants the company has outstanding.
  • Therefore, the company “lost” $2.6 million and this has to be reported on the income statement as a financial expense.
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