Convertible securities
- What difficulties can the embedded features and rights within convertible securities present?
- How PwC can help
What difficulties can the embedded features and rights within convertible securities present?
Companies may need to:
Determine the appropriate classification (i.e., debt or equity).
Assess the potential earnings volatility resulting from embedded derivatives that may require separate accounting.
Understand the potential impact on earnings per share.
Figure out a mix of other accounting and financial reporting complexities.
How PwC can help
As the accounting for complex debt/equity financing continues to evolve, it is important to keep ahead of the issues. PwC can help you:
- Train personnel to understand the maze of accounting guidance when evaluating convertible securities.
- Maintain transparent communication around the key terms being considered and the resulting accounting implications.
- Establish procedures to monitor any changes to the guidance in accounting for convertible securities.
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