what is the accounting treatment on Putoption over own shares.?



what is the accounting treatment on Putoption over own shares.?..

Answer / Vikash Pratap Singh

Accounting treatment for a put option over one's own shares (also known as a 'puttable preference share') can be complex and depends on various factors, including local regulations, accounting standards, and the specific terms of the security issue. Generally, when a company issues puttable preference shares, it grants holders the right but not the obligation to sell their shares back to the issuing company at a predetermined price (strike price) upon specific conditions. The treatment can have an impact on the company's financial statements, including balance sheet, income statement, and cash flow statement.

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