Advanced
Equity transaction analysis: warrants/convertibles classification
Analyzes equity-linked instruments for classification and measurement, highlighting key terms that drive outcomes. Useful for startups and audit support.
Analyze the equity-linked instrument for accounting classification under {framework}.
Inputs:
- Instrument type (warrant/convertible/SAFE): {instrument_type}
- Key terms (settlement, anti-dilution, price resets): {key_terms}
- Cap table context: {cap_table_context}
- Issuance date and proceeds: {issuance_details}
- Any modifications since issuance: {modifications}
Output:
1) Key term summary and decision points.
2) Likely classification outcomes (equity vs liability; bifurcation) with rationale and assumptions.
3) Measurement approach outline (fair value, amortized cost) and data needs.
4) Journal entries at issuance and subsequent measurement (template).
5) Disclosure checklist.
Flag where specialist valuation support is required.Related Prompts
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