Question
Locate ASU 2020-06. Using the summary, which of the following is NOT a reason given for the update for certain financial instruments with characteristics of
Locate ASU 2020-06. Using the summary, which of the following is NOT a reason given for the update for certain financial instruments with characteristics of liabilities and equity.
A. Reduce the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity.
B. Reduce the number of accounting models for convertible debt instruments and convertible preferred stock.
C. Reduce the number of embedded conversion features being separately recognized from the host contract as compared with current GAAP.
D. Reduce embedded conversion features being separately recognized for convertible instruments with conversion features that are not clearly and closely related to the host contract and that meet the definition of a derivative.
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