With ASU No. 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), the FASB took the long-overdue step of simplifying its accounting models applicable to convertible instruments. Among the changes is the complete elimination of the beneficial conversion feature (BFC). The changes in 2020-06 can be applied as early as fiscal years beginning after December 15, 2020 (the early adoption date)…so as of January 1, 2021, for calendar year reporting entities. Do it!
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