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Chapter 4 — Diluted EPS

4.4 If-Converted Method

4.4 If-Converted Method

Footnotes

15
Section 4.4.2.2.1.1 does not apply to convertible debt instruments for which the principal amount must be paid in cash.
16
This section does not apply to convertible debt instruments for which the principal amount must be paid in cash because interest charges on such instruments are not added back to the numerator when the if-converted method is applied.
17
ASC 825-10-15-5(f) prohibits the election of the fair value option for convertible preferred stock that is classified in stockholders’ equity (whether permanent or temporary equity).