Rosenberg United States Securities and Exchange Commission October 3, 2012 Page 4 Notes holders option to exchange the Notes: The Notes holders have the option to exchange the notes a fixed rate of 113.4753 ADSs per 1,000 in principal (equal to a conversion rate.
If the shares are redeemable, then the next question is, "Does the redemption feature provide a debt-like return?" A redemption feature that provides a debt-like return to the holder is an indicator that the host contract is more akin to debt.
With this approach, the nature of a host contract in a hybrid instrument that contains both an embedded conversion feature and an embedded put option depends primarily on whether the instrument is structured as equity or debt.ASC requires that a potential embedded derivative be separated from the host contract and accounted for as a derivative if all three of the following criteria are met: The economic characteristics and risks of the embedded derivative are not clearly and closely related to the.Step 2: Is the conversion feature clearly and closely related to the host instrument?Although the issuer is private, the holder would be able, upon conversion, to redeem its common shares directly with the company game subway surfers world tour rio for pc for cash.Step 1 summary, apply either the "whole instrument" (consider all embedded features) or the "chameleon" (exclude the feature being analyzed) approach to gauge whether the host contract is more debt-like or equity-like, focusing on redemption and return provisions.Requires little or no initial net investment.Filed August 8, 2012, file., dear. .Given the ability of the Company to call the Notes and the ability of holders of the Notes to put the Notes back to the Company at 100 percent of par in 5 years, the maximum life of the Note considered in the without scenario.Thero President, Chief Financial Officer Enclosures cc: Joseph.Identify all of the elements and embedded features required to be separated from the debt instruments and the specific accounting treatment of each.3) Fundamental change occurs in year 3 with a conditional probability weighting.The "whole instrument" approach.The SEC staff, however, has indicated that either the "chameleon" or the "whole instrument" approach is acceptable, as explained in "SEC staff's guidance on determining the nature of a host contract" below.The Company then evaluated whether the debt host would be remeasured, in its entirety, to fair value each period with changes in fair value reported in earnings as they occur. .
There is no requirement to make cash payments to the counterparty if the shares initially delivered upon settlement are subsequently sold by the counterparty and the sales proceeds are insufficient to provide the counterparty with a full return of the amount due This condition does.The Conversion Option of the Notes was determined using a valuation methodology based on with and without scenarios.The Company acknowledges that: the Company is responsible for the adequacy and accuracy of the disclosure in the filing; Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing;.In particular, a debt instrument with a conversion option that does not require separation as an embedded derivative might include terms allowing settlement upon conversion either wholly or partially in cash, in which case an entity would separately account for a portion of the proceeds.Under the without scenario, four separate scenarios were considered based on the assumed occurrence of a fundamental change, as described in the Notes indenture, and the conditional probability of the occurrence.The Company believes that the estimates used were appropriate and we have properly recorded the fair value of the debt liability.(i) Embedded conversion option indexed to the companys own stock ASC 815-40 provides guidance on whether an instrument or embedded derivative feature is indexed to a companys stock.
To do this, an entity must determine whether the values of the host contract and the conversion option are primarily dependent chevalier de baphomet 5 episode 2 on the same economic characteristics and risks.