Understanding Complex Financial Instruments

June 2019

This Practice Aid includes detailed flowcharts for analyzing embedded conversion options, freestanding warrants, and embedded puts and calls. It also discusses other topics such as balance sheet classification of shares, allocation of proceeds, earnings per share, and debt modifications among others. It has been updated to reflect ASU 2017-11 on “down round” features, and also reflects our perspective on selected practice issues.


Adam Brown
National Assurance Managing Partner, Accounting
  Thomas Faineteau
National Assurance Partner

Roscelle Gonzales
National Assurance Director
  Gautam Goswami
National Assurance Partner

Jin Koo
National Assurance Partner
  Tim Kviz
National Assurance Managing Partner, SEC Services

Liza Prossnitz
National Assurance Partner