Accounting for Financial Instruments with Characteristics of Both Liabilities and Equity
Author: Pat Patterson
| CPE Credit: |
2 hours for CPAs |
This course updates and reviews aspects of FASB ASC Topic 480. The origins of FAS 150 Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, from May 2003, was part of an ongoing project of the FASB dealing with financial instruments that had characteristics of liabilities and equity and was the background of Topic 480 in 2009 when the Accounting Standards Codification occurred. This course will update the rules for financial instruments with characteristics of both liabilities and equity and review the categories of financial instruments that are subject to the FASB ASC Topic 480 rules. The ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity will be reviewed as well.
Publication Date: December 2023
Topics Covered
- Update and review aspects of FASB ASC Topic 480
- Update on the rules for financial instruments with characteristics of both liabilities and equity
- Review categories of financial instruments that are subject to the FASB ASC Topic 480 rules
- Explore the entities that are subject to FASB ASC Topic 480
Learning Objectives
- Identify the issues when dealing with financial instruments with characteristics of both liabilities and equity
- Identify the origins of FAS 150 and its implications
- Identify the rules for accounting for financial instruments with characteristics of both liabilities and equity
- Recognize reporting and disclosures for this type of financial instrument
- Identify the ASU related to the replacement of the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of accounting for financial instruments.
Advance Preparation
None
