The Financial Accounting Standards Board's Emerging Issues Task Force issued a pronouncement that would close a widely used loophole that lets companies issue contingent convertible bonds - called CoCos - without diluting their earnings per share.

Corporations that have used CoCos to delay EPS dilution have argued that the dilutive effects should continue to be recorded only when conversion is permitted. Typically, conversion is contingent on an increase in the stock price, typically a rise of 20 to 30 percent above the price at which the CoCo was issued.

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