Company A is a newly formed company. It is seeking Federal Drug Administration (FDA) approval of a new drug. To raise capital, Company A has issued convertible debt to Company B. Company B can convert the debt to 60% ownership of the stock of Company A any time before FDA approval is received.

Would company B need to consolidate Company A under US GAAP or IFRS? Explain your answer.

Answer rating: 100% (QA)

IF company B converts its deb... View the full answer