Accounting for Stock Warrants Issued

Hi Allan,
I am interested in your questions and any answers that may show up in this group discussion regarding your accounting issues. We recently issued stock with warrants attached, and part of the purchase price was specifically assigned to the warrant in the stock purchase agreement. We booked the transaction as a Dr to cash and cr to additional paid in capital. We discussed with our auditor whether there has any requirement to value or revalue the warrants from time to time and he said it was pointless since they were not on the balance Sheet. Any revaluation attempt would involve posting offsetting dr and cr entries to the same additional paid in capital account (ie DR APIC, Cr Warrant revalutaion expense)! I am not an expert on this topic, but my position may be reassuring to you. Maybe there are experts in the group who could comment, or you could post your question to the "Ask the Expert" page in Proformative.

Simon