Deloitte
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Preface

Preface

Preface

We are pleased to present the 2023 edition of Issuer’s Accounting for Debt. This Roadmap provides an overview of the FASB’s authoritative guidance on the issuer’s accounting for debt arrangements (including convertible debt) as well as our insights into and interpretations of how to apply that guidance in practice.
Determining the appropriate accounting for debt arrangements can be time-consuming and complex. Terms that are significant to the accounting analysis may be buried deep within a contract’s fine print. To properly apply the numerous rules in U.S. GAAP, an issuer needs to closely analyze an instrument’s terms and conditions and the related facts and circumstances. The outcome of the analysis could significantly affect the classification, measurement, and earnings impact of the debt arrangement and associated financial statement ratios. This Roadmap is intended to help issuers navigate the guidance and arrive at appropriate financial reporting conclusions.
The 2023 edition includes updated and expanded guidance, including discussions reflecting the FASB’s issuance of ASU 2022-04. See Appendix E for details. Also, it is assumed in the Roadmap that entities have adopted the amendments made by ASU 2021-04 (on modifications of equity-classified written call options), ASU 2020-10 (on Codification improvements), ASU 2020-06 (on an issuer’s accounting for convertible debt), and ASU 2016-13 (on credit losses). For a discussion of the issuer’s accounting for convertible debt before the adoption of the amendments in ASU 2020-06, see Deloitte’s Roadmap Convertible Debt (Before Adoption of ASU 2020-06).
Be sure to check out On the Radar (also available as a stand-alone publication), which briefly summarizes emerging issues and trends related to the accounting and financial reporting topics addressed in the Roadmap.
We hope you find this Roadmap to be a useful resource, and we welcome your suggestions for improvements. If you need assistance with applying the guidance or have other questions about this topic, we encourage you to consult our technical specialists and other professional advisers.