Wiley GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

33   ASC 470 DEBT

Perspective and Issues

Subtopics

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

ASC 470-10, Overall

Classification

Due on demand loans

Increasing-rate debt

Subjective acceleration clauses

Debt with covenants

Revolving credit agreements

Indexed debt

Short-term obligations expected to be refinance

Example of short-term obligation expected to be refinance

ASC 470-20, Debt with Conversion and Other Options

Convertible debt

Example of book value method

Example of the market value method

Accrued interest upon conversion of convertible debt

Convertible bonds with a “premium put”

Debt convertible into the stock of a consolidated subsidiary

Accounting for a convertible instrument granted or issued to a nonemployee

Convertible bonds with issuer option to settle for cash upon conversion

Own-share lending arrangements related to a convertible debt issuance

Convertible Securities with Beneficial or Contingent Conversion Features

Beneficial conversion

Contingent conversion

Example 1: Intrinsic value of a conversion feature—fixed dollar terms

Example 2: Intrinsic value of a conversion feature—variable terms

Example 3: Intrinsic value of a conversion feature—contingent price terms

Example 4: Intrinsic value of a conversion feature—contingent feature

Example 5: Intrinsic value of a conversion feature—contingent conversion with variable terms

Example of extinguishment of debt with an embedded conversion feature

Contingent conversion rights ...