Surgent's Debt Accounting Update - Applying ASU 2020-06 and Other Challenges in Accounting for Debt

Description

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.

Highlights



• 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



Objectives



• 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



Designed For

Accounting and auditing practitioners at all levels who deal with debt accounting issues