BDO Comment Letter - Distinguishing Liabilities from Equity (Topic 480)

February 2017

Distinguishing Liabilities from Equity (Topic 480): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with Scope Exception (File Reference No. 2016-370)
BDO supports the proposal to reduce income statement volatility for many financial instruments, but recommends several improvements in the final standard.