FASB meets on liabilities and equity

BVWireIssue #175-4
April 26, 2017

At its April 19, 2017, meeting, the FASB discussed its project liabilities and equity and tentatively decided that:

  • A “down-round” feature should not preclude equity classification for an instrument that contains the feature; and
  • Public business entities should recognize the effect of the trigger of a down-round feature as an adjustment to earnings per share.

The FASB staff was asked to perform additional research.

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