1、 Debt and equity financing Handbook US GAAP April 2025 _ 2025 KPMG LLP,a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.

2、Contents Foreword.1 About this publication.2 1.Executive summary.5 2.Roadmap to the guidance .13 3.Debt.25 4.TDRs,debt modifications and extinguishments.173 5.Equity.338 6.Distinguishing liabilities from equity.462 7.SEC guidance on redeemable equity-classified instruments.622 8.Contracts in an enti

3、tys own equity .735 9.Hybrid instruments with embedded features.906 10.Convertible instruments.961 11.Comprehensive examples.1046 Index of changes.1098 KPMG Financial Reporting View.1099 Acknowledgments.1101 Debt and equity financing 1 Foreword 2025 KPMG LLP,a Delaware limited liability partnership

4、and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Complex instruments,Complex literature The array of accounting literature on financial instruments can be bewild

5、ering,and the varieties and complexities of modern financial instruments are sometimes staggering.Taken together,its not an exaggeration to say that accounting for debt and equity financing transactions can seem daunting.Determining the right accounting can require you to maneuver through multiple s

6、tandards and models just to arrive at the starting point.This Handbook uses roadmaps to navigate the different standards,explaining what guidance applies to what types of instruments.It provides an in-depth look at the broad and often complex issues related to the classification,measurement,presenta