Hi everyone. Hope you are all hanging in there with the Virus still around. Hopefully, this will not be around for that much longer. In the meantime, once again, FASB is looking at the standards on distinguishing debt from equity. This area has always been confusing and as one who previously worked for the tax authorities, the determination of debt versus equity is not any better on the tax side as well. This area is so confusing that many financial restatements are taking place simply due to the debt versus equity conundrum. FASB has directed its staff to develop indexation guidance based on a combination of both qualitative and quantitative guidance as well as having a mechanism to determine whether an instrument is indexed or not indexed to its own stock. The work is still in its early stages and I will keep you updated with future blogs on this matter. Until next time…………….