PODCAST

Podcast: Convertible debt explained - What, why, and how

KPMG professionals explain what convertible debt is, why companies use it, and how it’s accounted for upon settlement.

Nick Tricarichi

Nick Tricarichi

Partner, Dept. of Professional Practice, KPMG US

+1 571-538-2580

Meaghan Wrona

Meaghan Wrona

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-2546

Patrick Garguilo

Patrick Garguilo

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-2852

James Patdu

James Patdu

Director, Accounting Advisory Services, KPMG US

Podcast overview

Convertible debt instruments are complex and navigating the relevant accounting guidance is challenging – particularly when they are settled (i.e. converted). On this podcast, KPMG professionals cut through the complexity by explaining what convertible debt is, why companies use it, and the different accounting models that may apply once it’s converted.

Listen to our next episode, where we discuss how this guidance may change as a result of the recently proposed ASU.

Applicability

  • Entities with or considering entering into convertible debt instruments

Podcast contents

  • 00:25 – Introduction
  • 03:00 - Understanding convertible instruments
  • 06:00 - Incentives to convert debt
  • 08:30 - Induced conversions in practice
  • 10:55 - Conversions vs induced conversion accounting
  • 14:10 - Closing