Accounting for Convertible Debt: A Fundamental Financial Instrument Approach to Accounting for Convertible Debt as a Single Instrument

P. Casson

Working Papers from University of Southampton - Department of Accounting and Management Science

Abstract: The fundamental financial instrument approach of the FASB proposes that a compound instrument, such as a convertible bond, can be understook as being made up of fundamental financial instruments. Two methods of accounting for a convertible bond are seen as consistent with this approach: (a) recognise the fundamental components of a convertible bond separately in the accounts; and (b) analyse a convertible bond in terms of its fundamental components and account for it as a single instrument. There is currently disagreement amongst accounting regulators as which of thse methods should be used.

Keywords: FINANCIAL MARKET; ACCOUNTING (search for similar items in EconPapers)
JEL-codes: E47 G10 M41 M49 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1996
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fth:sotoam:96-116

Ordering information: This working paper can be ordered from
http://www.soton.ac.uk/~econweb/dp/discp.html

Access Statistics for this paper

More papers in Working Papers from University of Southampton - Department of Accounting and Management Science University of Southampton, Department of Accounting & Mangement Science, Southampton S09 5NH UK.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().