Scope sheet
finbryn.com
Technical accounting
Accounting for convertible notes, SAFEs and warrants
Finbryn provides accounting analysis for convertible notes, SAFEs and warrants for startup finance teams: classification memos under ASC 480, ASC 470-20 and ASC 815-40, conversion schedules and journal entries. Checked 2026-10-16: ASU 2020-06, effective for private companies from fiscal years beginning after December 15, 2023, removed the beneficial conversion feature model.
What is included
- Term sheet of every instrument with the clauses that drive classification
- Classification memo under ASC 480, ASC 470-20 and ASC 815-40
- Fair value roll-forward for instruments carried at fair value
- Conversion and extinguishment journal entries
- Draft convertible instrument and fair value disclosures
The process
- 1.
Inventory every instrument
SAFEs, notes, warrants and side letters, with issue dates, amounts, cap and discount terms and settlement clauses.
- 2.
Extract the clauses that drive classification
Conversion mechanics, cash payout rights, redemption and anti-dilution, shown in a term sheet with page references.
- 3.
Write the classification memo
One memo per instrument type: ASC 480, ASC 470-20 and ASC 815-40 applied to the terms, with the conclusion.
- 4.
Build the roll-forward
Balance by instrument, with fair value inputs supplied by management or its specialist where the liability is remeasured.
- 5.
Draft entries and disclosures
Conversion entries tied to the cap table, and footnote text for your controller to edit.
Software
Carta, Pulley, Microsoft Excel, QuickBooks Online
Finbryn is a brand of Northlane Solutions Inc., a Delaware corporation.
Reviewed October 2026