Deciphering the accounting for equity-linked instruments

We wrap up our miniseries on accounting for financing transactions with a focus on the accounting for equity-linked instruments. In this episode, we discuss: 2:03 - Why companies issue equity-linked instruments7:23 - Determining whether an instrument is freestanding or embedded13:13 - Determining whether an instrument is indexed to the entity’s own stock17:23 - Exercise contingencies19:50 - Settlement adjustments32:36 - Convertible debt instruments39:51 - Equity or liability classificationFo...