From its classification to the accounting for its issuance and conversion, accounting for issued debt can be very complex and is a frequent source of both financial statement restatements and peer review comments. To address this complexity, the FASB issued ASU No. 2020-06, which, while simplifying the accounting models for convertible debt, nonetheless retains 3 models for convertible debt. Further, careful analysis is required to determine the classification of debt between short- and long-term, especially when a company violates a debt covenant as well as to account for modifications to debt arrangements.
This course reviews the changes in debt accounting with the issuance of ASU No. 2020-06, detailing the three remaining models for convertible debt. It will also review the classification of debt in a variety of fact patterns and address how to differentiate between debt modifications and extinguishments.
DESIGNED FOR
Accounting and auditing practitioners at all levels who deal with debt accounting issues
BENEFITS
- The existing accounting models for convertible debt
- What changes in accounting for convertible debt with the issuance of ASU No. 2020-06
- Debt classification issues
- Accounting for amendments to debt agreements
HIGHLIGHTS
- Recall the current accounting models, and their criteria for convertible debt
- Identify how ASU 2020-06 simplifies the accounting for convertible debt
- Comprehend the nuances of classifying debt between current and noncurrent
- Recall how to account for amendments to debt arrangements
COURSE LEVEL
Update
PREREQUISITES
Experience in accounting and attestation