FASB Proposes Enhancements to Guidance on Induced Conversions of Convertible Debt Instruments

The FASB has released a proposed ASU Induced Conversions of Convertible Debt Instruments. The proposal, which is being issued in response to an EITF consensus-for-exposure, would clarify “the requirements for determining whether certain settlements of convertible debt instruments, including convertible debt instruments with cash conversion features, should be accounted for as induced conversions.”

For more information, see Deloitte’s September 2023 EITF Snapshot as well as the press release on the FASB’s Web site.