FMN Accounting

FMN - 2021/October, Seg 1 - What Makes Convertible Bonds Popular?

Convertible bonds are always a discussion item as companies are often concerned with proper classification. FASB simplified issuer's accounting for convertible instruments and contracts on an entity's own equity with issuance of ASU 2020-06, in an effort to reduce unnecessary complexity currently in U.S GAAP. Josh Schaeffer, director at Equity Methods, discusses the sexy side of debt and why convertible bonds are gaining more and more popularity, especially in times of financial crisis.

Learning Objectives:

  • Describe the main changes under ASU 2020-06 on the treatment of convertible bonds;
  • Identify some of the key features of convertible debt and the main reasons to issue convertible bonds;
  • Recognize the accounting considerations of convertible bonds; and
  • Understand the complexities of embedded derivatives.


Prerequisites/Advanced Preparation:

Work experience in financial reporting or accounting, or an introductory course in accounting.


Speaker / Author:

Josh Schaeffer is a director and practice leader for Equity Methods' valuation practice. He leads the delivery of valuation and advisory services related to complex securities. Besides complex securities, Josh brings his academic and practical experience in economics, finance, and statistics to a range of other challenges. One is helping companies assess pay equity. Another is determining median employee compensation for purposes of CEO pay ratio calculation. He enjoys solving unique problems and mentors employees who share this aptitude. He holds a BA in economics and math from the University of Rochester and a PhD and MBA in finance from the University of Chicago Booth School of Business.

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Price (USD)

Standard: $69.90

Details

Course Code : FMN1416-FM

Release Date : 10/09/2021
Expire Date : 05/14/2023
Credits :
CPE 2.00
QAS 2.00
Course Level : Update
Length : 1hr 40min
Course Type : QAS Self-Study

Passing Grade : 70%
Format Type : eLearning
Mobile Compatible
Field Of Study : Accounting

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