Appendix F — Roadmap Updates for 2025

General

Added cross-reference to Deloitte’s Roadmap Distinguishing Liabilities From Equity regarding the balance sheet impact of preferred stock dividends.

Dividends Paid in Shares of Preferred Stock

Updated to discuss the FASB’s PIK dividend measurement project, which is based on an EITF recommendation.

Induced Conversion of Preferred Stock

Added discussion of ASU 2024-04, which affects whether a transaction qualifies as an induced conversion. In addition, updated Example 3-17 to reflect the revised induced conversion criteria.

Control Number

Added Changing Lanes to discuss clarification made by FASB’s January 2025 proposed ASU on Codification improvements related to addressing apparent inconsistency between guidance in ASC 260-10-45-19 and 45-20 and that in ASC 260-10-45-45 and 45-46.

Contracts That Provide the Entity or Counterparty With the Choice of Settlement Method

Updated Table 4-7 to acknowledge the diversity in practice related to situations in which the control number is a loss and indicate that the pending ASU on Codification improvements is expected to reduce such diversity.

Stock Dividends and Stock Splits

Added cross-reference to discussion of accounting for splits and stock dividends in Section 10.3.3 of Deloitte’s Roadmap Distinguishing Liabilities From Equity.

Common Stock Issued for Note Receivable

Added cross-reference to Section 10.2.1.1 of Deloitte’s Roadmap Distinguishing Liabilities From Equity.

EPS of Entity Being Spun Off Included in a Registration Statement

Updated study discussed in Connecting the Dots for spin-offs identified between January 1, 2021, and December 31, 2023.

Historical Financial Reporting Periods in Exchange Act Filings

Updated study discussed in Connecting the Dots for spin-offs identified between January 1, 2021, and December 31, 2023.