Handbook: Debt and equity financing

The capital structures of many corporate entities are quite complex, comprising equity, debt, warrants, options and other instruments. This complexity creates accounting issues regarding how these financial instruments are classified, measured and presented in financial statements. This Handbook uses Q&As and examples to simplify the complexities of accounting for these financial instruments in the scope of ASC 405, ASC 470, ASC 480, ASC 505 and ASC 815.

Applicability

• All entities

Relevant dates

• Effective immediately

Report contents

• Identifying relevant accounting guidance for debt and equity instruments
• Debt
• Troubled debt restructurings, other debt modifications and extinguishments
• Equity
• Distinguishing liabilities from equity 
• SEC guidance on redeemable equity-classified instruments 
• Contracts in an entity’s own equity
• Hybrid instruments with embedded features
• Convertible instruments

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