Undetachable Stock Warrant

One issued along with a bond that requires simultaneous exercise of both to obtain stock. If the warrant is not detachable, the bond is, in essence, Convertible Debt only. No allocation of the proceeds should be to the conversion feature. The reason to account for the issuance only as convertible debt is the inseparability of the debt and conversion option. The excess received on the issuance attributable to the undetachable stock warrants is credited to premium on bonds payable since the issuance is accounted for solely as debt. See also Detachable Stock Warrant; Stock Warrant.