Preface
We are pleased to present the 2024
edition of Issuer’s Accounting for Debt. This Roadmap provides an overview of
the FASB’s authoritative guidance on the issuer’s accounting for debt arrangements
(including convertible debt) as well as our insights into and interpretations of how
to apply that guidance in practice.
Determining the appropriate
accounting for debt arrangements can be time-consuming and complex. Terms that are
significant to the accounting analysis may be buried deep within a contract’s fine
print. To properly apply the numerous rules in U.S. GAAP, an issuer needs to closely
analyze an instrument’s terms and conditions and the related facts and
circumstances. The outcome of the analysis could significantly affect the
classification, measurement, and earnings impact of the debt arrangement and
associated financial statement ratios. This Roadmap is intended to help issuers
navigate the guidance and arrive at appropriate financial reporting conclusions.
The 2024 edition of the Roadmap
includes updated and expanded guidance on various topics. See Appendix E for details.
Be sure to
check out On the Radar (also available as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.
We hope you find this Roadmap to be
a useful resource, and we welcome your suggestions for improvements. If
you need assistance with applying the guidance or have other questions about this
topic, we encourage you to consult our technical specialists and other professional
advisers.