Deloitte
Accounting Research Tool
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On the Radar

Convertible Debt (Before Adoption of ASU 2020-06)

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On the Radar
Convertible Debt (Before Adoption of ASU 2020-06)

An entity raising capital by issuing a convertible debt instrument must apply complex financial reporting requirements in U.S. GAAP. To properly account for such an instrument, an entity must consider the following:
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Footnotes

1
Convertible debt instruments issued to employees for service, to nonemployees for goods or services, or to customers are subject to the accounting guidance for share-based payment arrangements.