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.
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