Convertible debt comes with a conversion feature for investors to buy stocks of the issuer. The investors can enjoy the benefits of fixed-income instruments and later can subscribe to shares of the issuing company. Issuers can attract investors by attaching the stock warrants to the convertible debt as well. The feature further acts as a […]
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Detachable warrants act as freestanding instruments that companies use to attract investors. Generally, companies attach stocks with debt instruments such as bonds to attract investors. Detachable warrants offer several benefits to the issuers. The accounting treatment of detachable warrants largely depends on the classification of the warrants into liability or equity. Let us discuss what
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Fintech is one particular field that has seen exponential growth in the recent past. In this article, we briefly describe the top 10 best books about Fintech that you should be aware of. So let get started! Disclosure: This article includes affiliate links. As an Amazon associate participant, I earn a small commission on any
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In layman’s terms, both the warranty and guarantee may seem similar. However, both of these terms differ in definition, accounting treatment, and the obligation for all parties involved. Let us discuss the definitions and see the key differences between a warranty and a guarantee. Warranty – Definition A warranty is an assurance to a customer
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The ASC 460 guides an entity to recognize and record a liability arising from a guarantee. Guarantees can be issued for several purposes, including performance, financial, and revenue guarantees. ASC 460 guidelines provide useful information on whether a contract should be accounted for as a guarantee. Let us discuss the accounting treatment of a guarantee
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The cash operating cycle is the time taken by the business to realize its cash investment. In simple words, the business has to invest cash in purchasing the raw material, labor, overheads, and other business-related operations. However, it takes time for the business to realize cash, and holding of cash incurs finance expenses. Hence, businesses
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The cash conversion cycle measures the number of days between your date of payment for the goods and the date of receiving cash from customers. In simple words, it’s the time between cash going from the business and cash being received by the business. On the other hand, the operating cycle measures the number of
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Reporting information is critical for a company as stakeholders assess the position of a business by conducting detailed analysis. These reports are useful to identify the weaknesses and strengths of any business and where the business should focus on attaining maximum profitability. Let’s understand detailed aspects of sustainability reporting and integrated reporting. Sustainability Reporting The
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Definition Integrated reporting is concise communication of an entity’s governance strategies, performance, and prospects relevant to the external environment that leads to developing criteria for financial and non-financial value over the period. It provides us with an understanding of how a business is affected by its external environment and gives insights into how capital creates
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An interim reporting is when the business produces a financial overview before completing the financial reporting cycle. These reporting periods are dependent on the discretion of the management, and these periods can be monthly, quarterly, and semi-annually depending on the discretion of management. This type of reporting leads to improved communication between businesses and the
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