PODCAST

Podcast: Unpacking the FASB’s convertible debt proposed ASU

KPMG professionals take a deep dive into the proposed ASU to reveal what’s covered and what’s not.

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

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