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
Explore more
Resource
Handbook: Debt and equity financing
Latest edition: Our in-depth guide to debt and equity financing, with our latest interpretations.
Resource
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.
Resource
FASB proposal – induced conversions of convertible debt
FASB issues a proposed ASU on induced conversion accounting for convertible debt instruments.
Meet our team
