Option costs are incidental acquisition costs of shares

Even if warrants are independent assets, their cost leads to incidental acquisition costs of the shares subsequently acquired by exercising the option.

As long as an option right is not exercised, the option is an independent asset that can be resold at a profit or lead to a loss through expiration. At the same time, however, the acquisition of the option also means that incidental acquisition costs are incurred in the amount paid for the option for the subsequent acquisition of the securities to which the option entitles the holder. Admittedly, this specific character of the warrant only comes into play if the option is actually exercised and thereby itself expires. Nevertheless, the Federal Fiscal Court considers the allocation of the option costs as incidental acquisition costs of the shares acquired by exercising the option to be justified.