FROM FORD MOTOR CO.’s 2009 financials.
Convertible Debt Instruments. We adopted the FASB’s new standard on accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) on January 1, 2009. The standard specifies that issuers of convertible debt securities that, upon conversion, may be settled in cash should separately account for the liability and equity components in a manner that will reflect the entity’s nonconvertible debt borrowing rate resulting in higher interest expense over the life of the instrument due to amortization of the discount. This standard applies to our 4.25% Senior Convertible Notes due December 15, 2036 (“2036 Convertible Notes”) issued in December 2006 and our 4.25% Senior Convertible Notes due December 15, 2016 (“2016 Convertible Notes”) issued in November 2009. We have applied retrospectively the standard to all periods presented for the 2036 Convertible Notes.

MY QUESTION IS: What standard is this? is this the mysterious SFAS 150 which i never quite understood? Somebody help me. I was updating my fall course materials and found this and am struggling…