Pwc's Cfodirect Podcast

Convertible debt can offer an issuer a lower-cost financing alternative, but the accounting can be complex depending on the instrument’s terms, settlement features, and related transactions. This episode discusses the key accounting models for convertible debt, including bifurcation under ASC 815, the own stock scope exception, substantial premium model, single instrument model, related features such as capped calls and contingent interest, and diluted EPS considerations.  For further guidance on the accounting for this topic, see chapter 6 of PwC’s Financing transactions guide.   This is the final episode in our debt-related miniseries. In case you missed any, listen to our previous episodes: Debt restructuring: Accounting for borrowers Beyond debt: Accounting for other liability-classified arrangements Current or noncurrent? Getting debt classification right  Follow this podcast on your favorite podcast app and subscribe to our weekly newsletter to stay in the loop.  About our guests  Bret Dooley is a PwC N