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Accountants to Get Long-Sought Simplified Guide for Debt, Equity

Dec. 11, 2019, 9:14 PM

Coming soon: simpler accounting for an area of financial reporting that has bedeviled companies and accountants for decades.

The Financial Accounting Standards Board agreed Dec. 11 to make piece-by-piece changes to its sprawling equity versus liabilities accounting guidance, starting with reducing the number of ways companies can account for fundraising instruments called convertible debt—tools like convertible bonds that investors can swap to equity if a company’s stock reaches a certain price, for example.

The board agreed to reduce the number of accounting rules from five to two, as outlined in a plan the board released in July. FASB also attempted...

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