The current economic climate has resulted in many companies having to offer increasingly attractive returns in order to obtain funds from lenders and investors. In many cases, investors are requiring entities to issue convertible notes with a cash settlement option instead of issuing equity shares, as a convertible has only upside returns and the cash settlement feature protects the investor from losses. Increasingly, issuers are being forced to add enhancements to conversion features in order to attract investors.
The increasing number of instruments being issued with more complex conversion features has led to questions being raised about the appropriate accounting treatment from the perspective of the issuer.
Webinar Learning Outcomes:
• Explain the basic principles on accounting for convertible notes
• Explain the accounting treatment of convertible notes with embedded derivatives
• Explain the accounting treatment of convertible notes when the equity feature fails equity classification
• Explain the accounting treatment of convertible notes when the equity feature still meets equity classification
• Explain some other common practical issues
• All organisations who issue convertible notes to obtain funds from lenders and investors; and
• Preparers and auditors of financial reports.
Aletta Boshoff is a Partner & National Leader, IFRS Advisory at BDO Australia. She is an IFRS advisory specialist with over 25 years’ experience in financial reporting and accounting, including IFRS. Aletta prides herself on her technical excellence, approachability, and the ability to solve problems practically. Aletta loves accounting and accounting standards, but she is also of the view that it's only when you try and apply that knowledge that you are really challenged and that it is only then that you fully appreciate the nuances of IFRS.
In particular, Aletta takes great pride in her ability to apply a wealth of technical expertise to real-world business situations. She works hard to ensure she is working with her clients, involving them at every step of the journey. She helps them to understand how she came to a recommendation, so that they can test any assumptions she has made and together they can come to the best IFRS solution possible.
Your webinar purchase includes:
• the PowerPoint slide deck as a PDF workbook
• any supporting documentation required
• access to stream the Webinar Recording multiple times
• an opportunity to participate in Q&A
The practical application of AASB 132 is still problematic. Are you getting it right?