About this episode

This episode discusses the complexities of accounting for convertible debt and the key models involved.

Convertible debt can offer an issuer a lower-cost financing alternative, but the accounting can be complex depending on the instrument’s terms, settlement features, and related transactions. This episode discusses the key accounting models for convertible debt, including bifurcation under ASC 815, the own stock scope exception, substantial premium model, single instrument model, related features such as capped calls and contingent interest, and diluted EPS considerations. For further g...

Topics covered

• convertible debt
• accounting models
• bifurcation
• diluted EPS
• financial instruments

Keywords

• convertible debt
• accounting
• bifurcation
• ASC 815
• diluted EPS
• settlement features
• premium model

Mentioned in this episode

Organizations: PwC, ASC 815

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