This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
Easier Rules for Debt Equity Classification
Determining the proper classification can be complicated for financial instruments that have characteristics of both debt and equity. FASB recently finalized targeted changes to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity. This article provides details on new disclosures.
