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Analyses of spectrophotometric measurements of shrinkage and swelling of liposomes under osmotic-diffusional stress tacitly assume an 'empirical' inverse relationship between the absorbance (A) and the liposomal volume (v). In this paper, we have proposed an alternate more explicit relationship: A = EcL e - alpha Lv/1-Lv where L is liposomal concentration, Ec the extinction coefficient and alpha a dimensionless parameter. The exponential term, in essence, defines the partitioning of aqueous volume into intra- and extra-liposomal compartments. Experimental data obtained with glycerol as model compound are used to test the validity and internal consistency of the proposed formalism.