Podcast overview
On December 19, 2023, the FASB issued a proposed Accounting Standards Update (ASU) that would provide additional guidance on whether induced conversion or extinguishment accounting should be applied to certain settlements of convertible debt instruments that do not occur in accordance with the instruments’ preexisting terms.
Applicability
- All entities settling certain convertible debt instruments with cash conversion features (CCFs) pursuant to offers that differ from the instruments’ existing terms
Relevant dates
- December 19, 2023 – FASB issued proposed ASU
- March 18, 2024 – Comments due on proposed ASU
Podcast contents
- 00:25 – Introduction
- 01:50 – The need for clarified guidance
- 06:00 – The impact of the proposed ASU
- 10:15 – Effective date and transition guidance
- 12:30 – Practical considerations
- 13:55 – Closing
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