Question

You are delivering a presentation and the subject matter concerns whether a company should report convertible debt simply as a liability, or whether embedded features (like the conversion option) in the debt should be separately accounted for as derivatives. Thinking beyond the case facts, list four other considerations you should be prepared to address (such as during Q&A) or background understanding you should gain before presenting

Answer 1

Before introducing yourself, it is imperative that you fully inform yourself about the two cases to be discussed, and what the effects of each have on the organization. It is also important to make a hypothetical situation of each case and to observe probable causes and effects that will assist in creating the probable scenario and in decision making.