Final answer:
The statement about nondetachable warrants not requiring an allocation of proceeds between the bonds and warrants is false; companies must allocate based on fair values to reflect accurate financial reporting. The correct option is b.
Step-by-step explanation:
The statement that nondetachable warrants do not require an allocation of the proceeds between the bonds and the warrants is false. When a company issues bonds with nondetachable warrants, it is essentially selling a bond with an attached option to purchase the company's stock at a specific price.
According to accounting standards, companies are required to allocate the proceeds between the bonds and the warrants based on their fair values. This is done to accurately reflect the securities' value on the company's financial statements and ensure that investors have clear information about the company's liabilities (bonds) and equity (warrants).
Hence, Option b is correct.