Preface

We are pleased to present the 2024 edition of Contracts on an Entity’s Own Equity. This Roadmap provides an overview of the guidance in ASC 815-401 as well as insights into and interpretations of how to apply it in practice. For ease of reference, we have accompanied our discussion with the related authoritative text.

It is assumed in this edition that an entity has adopted ASU 2020-06. We have therefore removed from the Roadmap discussions of the accounting before adoption of the ASU’s guidance. The 2024 edition also contains new and expanded guidance on various topics. Appendix F outlines significant changes made since the issuance of the 2023 edition of the Roadmap.

We hope you will find this Roadmap to be a useful resource in determining the appropriate accounting for contracts on an entity’s own equity, and we welcome your suggestions for improvements to it. If you need assistance applying the guidance or have other questions about this topic, we encourage you to consider consulting our technical specialists and other professional advisers.