Of course all accounting is byzantine to me. Looks like they have to change the value of the debentures in their statements.
I guess this is the key statement from the 8K.
The decision by the Company to account for its interest in Phoenix Digital Solutions, LLC in accordance with the equity method of accounting for investments and its decision to bifurcate the embedded derivatives in its previously outstanding convertible debentures will not have a material effect on the Company`s financial condition.
But I think that DP should be prepared to write a letter explaining the EITF`s effect on the accounting like RIMM did.
http://www.rimsemi.com/letters/20060711.html
