On November 26, 2024, FASB issued Accounting Standards Update 2024-04, which clarifies several issues related to convertible debt securities, including:
- When the requirements for induced conversion accounting apply
- How to apply the induced conversion guidance to convertible debt instruments that do not require the issuance of equity securities
- When induced conversion guidance can be applied to a convertible debt instrument that is not currently convertible
Download the PDF below for details on the guidance.
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