United States

FASB Proposes Changes to Accounting for Down-Round Financial Instruments

Dec 12, 2016
From the Financial Reporting View

This edition of Defining Issues reports that a recent FASB proposal would require companies to disregard down-round features when determining whether certain equity-linked financial instruments should be classified as liabilities or equity.  Down-round features likewise would not affect ongoing measurement of financial instruments (when liability-classified) and would only be accounted for when they are triggered.

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