Handbook: Debt and equity financing

Using Q&As and examples, KPMG provides interpretive guidance on debt and equity financings. This October 2022 edition incorporates new and updated guidance and interpretations.

Applicability

• All entities

Relevant dates

• Effective immediately

Key impacts

This October 2022 edition incorporates new and updated guidance and interpretations, including:

• Examples of common transactions requiring analysis under several Codification Topics.
• Guidance on accounting for financial instruments associated with SPAC transactions.
• Updates to reflect guidance in the Issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options (ASU 2021-04).

Report contents

• Roadmap to the guidance
• Debt
• Troubled debt restructurings (TDRs), debt modifications and extinguishments
• Equity
• Distinguishing liabilities from equity
• SEC guidance on redeemable equity-classified instruments
• Contracts in an entity’s own equity (before adoption of ASU 2020-06)
• Contracts in an entity’s own equity (after adoption of ASU 2020-06)
• Hybrid instruments with embedded features
• Convertible instruments (before adoption of ASU 2020-06)
• Convertible instruments (after adoption of ASU 2020-06)
• Comprehensive examples
• Effective dates and transition

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