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Appendix F — Roadmap Updates for 2024

Appendix F — Roadmap Updates for 2024

Appendix F — Roadmap Updates for 2024

The table below summarizes the substantive changes made in the 2024 edition of this Roadmap.
New Content
Section
Title
Description
Prepaid Obligations
Added section to address the accounting for prepaid forward contracts to purchase equity shares and prepaid written put options.
Separate Financial Statements of a Subsidiary
Added section to discuss whether a subsidiary entity must classify an instrument in temporary equity in its separate financial statements.
Amended Content
Section
Title
Description
 
Updated discussions of the calculation of diluted EPS.
Overview
Revised discussion of ASU 2020-06. (Note that it is assumed in this Roadmap that entities have adopted ASU 2020-06.)
The Concept of an Obligation
Added Connecting the Dots to address situations in which call options may represent obligations of the issuer.
Prepaid Obligations
Added references to new guidance in Section 5.2.1.4.
Convertible Preferred Shares
Amended guidance on convertible preferred shares that are treated as liabilities under ASC 480. Removed discussion of accounting before adoption of ASU 2020-06.
Allocation of Proceeds
Added Connecting the Dots to discuss circumstances in which the proceeds received for more than one freestanding financial instrument may not represent the aggregate amount initially recognized for such financial instruments.
Fair Values Exceed Proceeds Received
Added Connecting the Dots to address situations in which an expense is recognized on the issuance date of more than one freestanding financial instrument in an amount that exceeds the initial fair value of an instrument that is measured subsequently at fair value through earnings.
Preferred Stock With Cash Conversion Features
Removed discussion of accounting before adoption of ASU 2020-06.
Preferred Stock With Cash Conversion Features
Removed discussion of accounting before adoption of ASU 2020-06.
Overview
Added Connecting the Dots to discuss situations in which a freestanding financial instrument within the scope of ASC 480-10-25-8 can be classified as an asset.
An Obligation to Repurchase the Issuer’s Equity Shares or One That Is Indexed to Such an Obligation
Added Connecting the Dots to discuss circumstances in which a warrant on callable shares is evaluated as a warrant on puttable shares.
Contracts on Redeemable Equity Shares That Do Not Require a Transfer of Assets
Added guidance on prepaid forward sale contracts.
Earnings per Share
Removed discussion of accounting before adoption of ASU 2020-06.
Other Forward Purchase Contracts and Written Put Options on Common Stock
Removed discussion of accounting before adoption of ASU 2020-06.
Accounting for the Effect of Variability in the Number of Shares That Must Be Issued on Settlement
Removed discussion of accounting before adoption of ASU 2020-06.
Freestanding Equity-Classified Contracts (Other Than Outstanding Shares)
Removed discussion of accounting before adoption of ASU 2020-06.
Convertible Debt Instruments Separated Into Liability and Equity Components
Removed discussion of accounting before adoption of ASU 2020-06.
Features That the Issuer Must or May Settle in Its Equity Shares
Updated to reflect guidance after the adoption of ASU 2020-06.
Convertible Debt Instruments Separated Into Liability and Equity Components
Removed discussion of accounting before adoption of ASU 2020-06.
Recognition of Measurement Changes and Dividends
Updated to add discussion of down-round features.
Paid-in-Kind Dividends
Amended guidance on PIK dividends that are considered nondiscretionary.
Convertible Debt With a Separated Equity Component
Removed discussion of accounting before adoption of ASU 2020-06.
Convertible Preferred Stock With a Separated Equity Component
Removed discussion of accounting before adoption of ASU 2020-06.
Convertible Debt With Separated Equity Component
Removed discussion of accounting before adoption of ASU 2020-06.
Conversions
Removed discussion of accounting before adoption of ASU 2020-06.