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

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Appendix F — Roadmap Updates for 2024

The table below summarizes the substantive changes made in the 2024 edition of this Roadmap.

Section	Title	Description
2.1	Instruments Potentially Indexed to, and Potentially Settled in, the Entity’s Own Equity	Simplified discussion of the scope of ASC 815-40 and removed discussion of the accounting before adoption of ASU 2020-06.
2.2.1	Interaction With the Derivative Accounting Requirements	Simplified discussion of the scope of ASC 815-40 and removed discussion of the accounting before adoption of ASU 2020-06.
2.2.2	Hybrid Instruments and Embedded Features	Simplified discussion of the scope of ASC 815-40 and added Connecting the Dots to address the interaction between the temporary equity guidance in ASC 480-10-S99-3A and the equity classification guidance in ASC 815-40.
2.4	Share-Based Payments	Simplified discussion of the scope of ASC 718 and ASC 815-40 and removed discussion of the accounting before adoption of ASU 2020-06.
2.5.1	Contingent Consideration	Simplified discussion of the scope of ASC 805 and ASC 815-40 and removed discussion of the accounting before adoption of ASU 2020-06.
2.5.3	Share-Settleable Earn-Out Arrangements	Reorganized section and moved discussion of indexation to Sections 4.2.3.2 and 4.3.7.4.
2.6.2	Contracts on the Stock of a Parent or Other Entity That Is Not Consolidated	Added Connecting the Dots to address the accounting for a subsidiary that holds shares of stock of its parent or an affiliate.
4.2.3.2	Share-Settleable Earn-Out Arrangements	Added new section that includes the guidance that was previously in Section 2.5.3.
4.3.2	The Concept of a Fixed-for-Fixed Forward or Option on Equity Shares	Removed discussion of the accounting before the adoption of ASU 2020-06.
4.3.3	Provisions That Adjust the Settlement Amount	Removed discussion of the accounting before the adoption of ASU 2020-06.
4.3.5.5.1	Side Letters That Modify Volatility Assumptions or Other Settlement Provisions	Renumbered section and expanded discussion to address other types of side letters that modify the volatility assumptions used in an early settlement.
5.2.1	Overview	Removed discussion of the accounting before adoption of ASU 2020-06.
5.2.2.1	Cash Settlement Outside the Entity’s Control	Revised guidance on cash payments that do not result in settlement of an equity-linked instrument.
5.2.3.2	Net Cash Settlement Upon Final Liquidation of the Entity	Removed discussion of the accounting before adoption of ASU 2020-06.
5.2.4	Settlement Alternatives: General Requirements	Removed discussion of the accounting before adoption of ASU 2020-06.
5.2.4.3	Application to Certain Embedded Features	Removed discussion of the accounting before adoption of ASU 2020-06.
5.2.5	Settlement Alternatives With Different Economic Value	Removed discussion of the accounting before adoption of ASU 2020-06.
5.3.1	Overview	Simplified discussion of the equity classification conditions and removed discussion of the accounting before adoption of ASU 2020-06.
5.3.2	Settlement Required in Registered Shares	Amended discussion to focus on the accounting considerations after adoption of ASU 2020-06. Also, deleted the previous guidance in Sections 5.3.2.1 through 5.3.2.5 since it is no longer relevant after adoption of ASU 2020-06.
5.3.2.1	Interaction With the Guidance on Registration Payment Arrangements	Renumbered from Section 5.3.2.6 and updated to reflect adoption of ASU 2020-06.
5.3.7	No Counterparty Rights Rank Higher Than Shareholder Rights	Deleted section; guidance superseded by ASU 2020-06.
5.3.8	No Collateral Required	Deleted section; guidance superseded by ASU 2020-06.
5.4	Ongoing Reassessment of Classification Requirements	Removed discussion of the accounting before adoption of ASU 2020-06.
5.5	Application of the Equity Classification Conditions to Certain Convertible Debt Instruments	Simplified discussion of the exception for certain convertible debt instruments and removed discussion of the accounting before adoption of ASU 2020-06.
6.1.1	Initial and Subsequent Measurement	Added Connecting the Dots to discuss the initial recognition of an equity-linked instrument issued with other financial instruments at an aggregate amount that differs from the fair value of the instruments issued; removed discussion of the accounting before adoption of ASU 2020-06.
6.1.5	Down-Round Features	Removed discussion of the accounting before adoption of ASU 2020-06.
6.2	Freestanding Instruments Classified as Assets or Liabilities	Removed discussion of the accounting before adoption of ASU 2020-06.
6.3.1	Instrument Meets the Definition of a Derivative Instrument	Deleted section; guidance superseded by ASU 2020-06.
6.3.2	Instrument Does Not Meet the Definition of a Derivative Instrument	Deleted section; guidance superseded by ASU 2020-06.
6.4	Embedded Features	Removed discussion of the accounting before adoption of ASU 2020-06.
7.1.1.2	Diluted EPS	Removed discussion of the accounting before adoption of ASU 2020-06.
7.1.2	Disclosure	Removed discussion of the accounting before adoption of ASU 2020-06.
8.4.2	Separation of Equity Components	Removed discussion of the accounting before adoption of ASU 2020-06.
Appendix B	Checklists for Determining Whether Freestanding Contracts or Embedded Features Qualify as Equity	Removed discussion of the accounting before adoption of ASU 2020-06.

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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.