This presentation updates and reviews aspects of FASB ASC Topic 480. The origins of FAS 150 Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity, from May 2003, was part of an ongoing project of the FASB dealing with financial instruments that had characteristics of liabilities and equity and was the background of Topic 480 in 2009 when the Accounting Standards Codification occurred. This session will update the rules for financial instruments with characteristics of both liabilities and equity and review the categories of financial instruments that are subject to the FASB ASC Topic 480 rules. The ASU 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): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity will be reviewed as well.
Who Should Attend
TBD
Topics Covered
- FAS 150 Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity
- FASB Staff Position 150-3 will be discussed
- Review categories of financial instruments that are subject to the FASB ASC Topic 480 rules
- Explore the entities that are subject to FASB ASC Topic 480
- Explanation of the deferral dates and new effective dates
Learning Objectives
- Identify the issues when dealing with financial instruments with characteristics of both liabilities and equity
- Identify the origins of FAS 150 and its implications
- Identify the rules for accounting for financial instruments with characteristics of both liabilities and equity
- Recognize reporting and disclosures for this type of financial instrument
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic understanding of accounting for financial instruments.
Advance Preparation
None
Instructor
Pat Patterson
Cecil Patterson, (Pat), CPA, MBA, is an award-winning, nationally recognized author, speaker, and discussion leader for continuing education courses and numerous state societies. He has experience at the local and national CPA-firm level and as an adjunct university professor.
Pat holds an MBA from the University of North Florida and is a CPA and owner of the firm of Cecil Patterson, CPA. His firm provides, accounting, tax preparation and tax planning services, wealth management services, and consulting for businesses and other professional firms.
Pat has served on the AICPA Council, the FICPA Council, and the FICPA Educational Foundation Board of Trustees.