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Appendix F — Roadmap Updates for 2023

Appendix F — Roadmap Updates for 2023

Appendix F — Roadmap Updates for 2023

The table below summarizes the substantive changes made in the 2023 edition of this Roadmap.
Section
Title
Description
 
Updated discussions of balance sheet classification and the calculation of diluted EPS.
Put Warrants
Added guidance to clarify how put warrants differ from net-cash-settled written call options.
Initial Measurement
Added Connecting the Dots to discuss the excise tax provision in the Inflation Reduction Act of 2022.
Reassessment
Added Example 6-9 to further illustrate the reassessment guidance under ASC 480-10-25-14.
Special Considerations When the Holder Has the Ability to Control Issuer Decisions
Updated the list of features that would require an equity instrument to be classified in temporary equity.
Limited Exception Applicable to Certain Deemed Liquidation Provisions
Clarified the relationship between the deemed liquidation exception in ASC 480-10-S99-3A(3)(f) and the equity classification conditions in ASC 815-40-25. Also, added Examples 9-6 and 9-7.
Increasing-Rate Preferred Stock
Added guidance to clarify (1) the application of SAB Topic 5.Q to convertible preferred stock and (2) the relationship between SAB Topic 5.Q and the SEC’s guidance on redeemable equity securities.
Issuer Does Not Control Share Settlement
Added guidance on whether remeasurement is required when the holders of a convertible instrument control the issuer. Also added Section 9.5.4.6.1, which illustrates the application of this guidance in Examples 9-15, 9-16, and 9-17.
Extinguishments
Clarified that additional analysis is necessary if the fair value of the consideration transferred to redeem a preferred stock instrument does not reflect the fair value of the instrument that is being redeemed.