BDO Comment Letter - Derivatives and Hedging Put and Call Options in Debt Instruments

October 2015

Proposed Accounting Standards Update (ASU), Derivatives and Hedging – Contingent Put and Call Options in Debt Instruments (Topic 815) (File Reference No. EITF-15E)

BDO agrees with the clarification that only four steps are needed to determine if a put or call option should be bifurcated.  We also recommend clarifying how to identify puts or calls for that purpose.