Chapter 2 — Scope
Before an issuer applies the accounting guidance in ASC 480-10 to a contract, it should evaluate whether the guidance applies to the contract. In this chapter, we discuss the types of entities and instruments that are subject to ASC 480-10 (see Sections 2.1 and 2.2). Further, we describe how the guidance in ASC 480-10 interacts with other GAAP that apply to derivatives (see Section 2.3), share-based payments (see Section 2.4), convertible preferred shares with cash conversion features (CCFs) (see Section 2.5), contingent consideration in a business combination (see Section 2.6), registration payment arrangements (see Section 2.7), and guarantee obligations (see Section 2.8).
This chapter does not address the scope of the SEC’s temporary equity
requirements in ASC 480-10-S99-3A. For a discussion of the
applicability of those requirements, see Sections 9.2 and 9.3.