Appendix C — Roadmap Updates for 2024 | DART – Deloitte Accounting Research Tool

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Appendix C — Roadmap Updates for 2024

The tables below summarize the substantive changes made in the 2024 edition of this Roadmap.

New Content

Section	Title	Description
2.3.12.1	Inflation-Indexed Lease Payments	Added new subsection to more specifically address this common embedded feature in lease contracts.
2.3.12.2	Lease Payments Denominated in a Foreign Currency	Added new subsection to more specifically address this common embedded feature in lease contracts.
5.5.5	Scope Exception for Certain Loan Commitments	Added new section describing circumstances in which the debtor can apply the loan commitment scope exception to commitments with certain term extension features.
5.6.5	Exception for Certain Foreign Currency Features	Added new section on the application of the scope exception to financial instruments with payments that are denominated in a foreign currency. Renumbered the previous Section 5.6.5 to Section 5.6.6.
6.2.5	Scope Exception for Certain Own Equity Contracts	Added new section that discusses a scope exception that may be applied by entities that issue contracts settleable in their own equity.
6.2.6	Scope Exception for Certain Share-Based Payment Transactions	Added new section, including Connecting the Dots, to note the scope exception for share-based payment transactions that are within the scope of ASC 718.
6.3.5	Scope Exception for Certain Own Equity Contracts	Added new section that discusses a scope exception that may be applied by entities that issue contracts settleable in their own equity.
6.3.6	Scope Exception for Certain Share-Based Payment Transactions	Added new section to note the scope exception for share-based payment transactions that are within the scope of ASC 718.
6.7.5	Scope Exception for Loan Commitments	Added new section discussing the potential applicability of the loan commitment scope exception to debtors.

Amended Content

Section	Title	Description
On the Radar		Added (1) a video that describes the guidance in ASC 815 on accounting for derivative and (2) a discussion of the FASB’s proposed ASU on derivatives scope refinements.
2.3	Scope Exceptions	Added a video that explains how scope exceptions in ASC 815 either allow or require an entity to avoid accounting for an instrument as a derivative.
2.3.1	Regular-Way Security Trades	Updated the discussion of the applicability of this scope exception as a result of changes in an SEC final rule that became effective in 2024.
2.3.2.6.3	Forward Contracts That Contain Optionality Features	Added discussion and Examples 2-8 and 2-9 regarding the determination of whether requirements contracts and contracts that include optionality features qualify for the NPNS scope exception. Renumbered subsequent examples.
2.3.4	Certain Financial Guarantee Contracts	Added Example 2-12, which discusses whether contracts with certain types of guarantees are eligible for a scope exception. Renumbered subsequent examples.
2.3.5	Certain Contracts That Are Not Traded on an Exchange	Added a Changing Lanes discussion of the FASB’s proposed ASU on derivative scope refinements.
2.3.5.3	Certain Revenue-Based Payments	Removed the previous Connecting the Dots discussing the pending FASB project on derivatives scope refinements. Updated discussion of the related July 23, 2024, proposed ASU is included in other sections as referenced in this appendix.
2.3.5.4	R&D Funding Arrangements	Added a Changing Lanes discussion of the FASB’s issuance of a proposed ASU and its potential impact on accounting for R&D funding arrangements as derivatives.
4.2.2	Payoff-Profile Approach to Identifying Embedded Derivatives	Added a video that explains the payoff profile approach for identifying and evaluating embedded derivatives.
4.2.2.3	Equity Conversion Features	Enhanced the discussion of unit of account for embedded conversion features.
4.2.2.4	Redemption Features	Added a Connecting the Dots to address the evaluation of certain call options.
4.3.2.3.1	Hybrid Contracts in the Legal Form of an Outstanding Share: Overview	Added a video that summarizes the “whole-instrument approach” to determining the nature of the host contract in a legal-form debt instrument.
4.4.4.1	Reassessment: General	Updated the discussion to clarify that if a contract is modified or exchanged, entities should reperform their analysis of whether any embedded features must be separated from the hybrid instrument under ASC 815-15.
6.3.1	Conversion Features in an Equity Host: Background	Added discussion and Example 6-4 to distinguish between conversion features and share-settled redemption features, and the associated impact on the bifurcation analysis. Renumbered subsequent examples.
6.4.3	Clearly-and-Closely-Related Analysis	Added Connecting the Dots to note that when a contract is modified, the entity should reassess the bifurcation analysis. Added a reference to Deloitte’s Roadmap Issuer’s Accounting for Debt for more specific guidance on how to perform this analysis when a modification if accounted for as a troubled debt restructuring.
6.5.4	Derivative Analysis	Added Example 6-10, which provides a bifurcation analysis of a share-settlement feature embedded in an equity host. Renumbered subsequent examples.
6.10.5	Contingent Interest Rate Features in ESG-Linked Debt Instruments	Updated the Changing Lanes to describe the latest developments on the FASB’s projects related to derivatives and their potential impact on ESG-linked debt instruments.

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