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.
|