2.2 Accretion Method

As discussed in Section 9.4.3.2 of this Roadmap, the accretion method represents one of the two acceptable methods under ASC 480-10-S99-3A(15) for subsequently measuring noncontrolling interests when (1) the noncontrolling interests are not currently redeemable but (2) it is probable that they will become redeemable. Under this method, reporting entities “[a]ccrete changes in the redemption value [price of the instrument] over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument using an appropriate methodology, usually the interest method.” For information about the other alternative, refer to the definition of the immediate method (Section 2.18).