Journal of Accounting Research Vol. 9 No. 1 1971
An Alternative to APB Opinion No. 14
Abstract
When Accounting Principles Board issued Opinion No. 14 it completed a full cycle in its atttitude toward classification of convertible securities. The Board concluded that no portion of proceeds from a convertible bond issue be accounted for as attributable to conversion features. 1 Its earlier position had been that the portion of proceeds attributable to conversion feature or warrants should be accounted for as paid-in capital. 2 The purpose of this paper is to question conclusion of APB 14 by comparing debt-equity distinction on basis of traditional criteria supported by some empirical evidence on conversions.3 The empirical data are examined in context of debt-equity distinctions as they are found in accounting, finance, investment, and legal literature. These distinctions are: (1) maturity date, (2) claim on assets, (3) claim on income, (4) voice in management, (5) maturity value, (6)
- DOI
- 10.2307/2490210
- Volume
- 9
- Issue
- 1
- Pages
- 160
- Sources
- bibtex:phds-export.bib openalex crossref