Valuation of Convertible Debt and Embedded Derivatives
Analysis of best practices in valuation methodologies for private company debt convertible into subsequent round equity financing, and for valuation of embedded derivatives for financial reporting.
Format
Webcast
NASBA Field of Study
Accounting
Level
Basic
CPE Credits
1.5
Instructor
Jared Hannon, Oksana Westerbeke
Availability
3 months
Product Number
WC4375588
Valuation best practices
Learn about best practices for methodologies used in:
- The valuation of debt convertible into the next round of equity financing issued by private companies
- Related embedded derivatives for financial reporting purposes.
You'll also learn about how the choice of assumptions will affect the fair value conclusion of the embedded derivative. This webcast will also discuss:
- A proper way to calibrate discount to value or discount to stock price
- How to adjust the calibration discount for subsequent measurement periods
Key Topics
- Valuation of complex securities
- Identification of embedded derivatives
- Calibration adjustments
- Properties of convertible debt
Learning Outcomes
- Identify properties of convertible debt issued by private companies.
- Recognize typical derivatives embedded in convertible debt issued by private companies that require bifurcation.
- Identify methodologies used in the valuation of convertible debt.
- Identify significant assumptions used in the valuation of convertible debt.
- Recognize different approaches for calibration and their impact on the value of derivatives.
- Identify common challenges of valuing convertible debt.
Who Will Benefit
- Valuation practitioners
- Financial auditors
- Investment managers
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2 to 5 registrants
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