2.1 Overview
This chapter provides an overview of the types of contracts and transactions that are within the scope of ASC 470-20 (see Section 2.2) and discusses specific scope considerations related to the following:
- Embedded derivatives (see Section 2.3).
- Share-settled redemption or indexation features (see Section 2.4).
- The fair value option (see Section 2.5).
- Temporary equity (see Section 2.6).
- Debt that can be exchanged for another entity’s stock (see Section 2.7).
- Convertible instruments issued to nonemployees for goods or services (see Section 2.8).