Deciphering the accounting for equity-linked instruments

PwC's accounting podcast · May 28, 2024 · 53m · transcript

We wrap up our miniseries on accounting for financing transactions with a focus on the accounting for equity-linked instruments.

In this episode, we discuss:

2:03 - Why companies issue equity-linked instruments

7:23 - Determining whether an instrument is freestanding or embedded

13:13 - Determining whether an instrument is indexed to the entity’s own stock

17:23 - Exercise contingencies

19:50 - Settlement adjustments

32:36 - Convertible debt instruments

39:51 - Equity or liability classification

For more information on these topics, read chapter 5 of our Financing transactions guide. Also…