FASB Proposes Amendments to Issuer’s Accounting for Modifications or Exchanges of Freestanding Equity-Classified Forwards and Options
October 26, 2020
The FASB has issued a proposed Accounting Standards Update (ASU), Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Forwards and Options. The proposed ASU is based on the EITF’s consensus-for-exposure on Issue 19-C and would provide a “principles-based framework to determine whether an issuer would recognize the modification or exchange as an adjustment to equity or an expense.”
Comments on the proposed ASU are due by December 28, 2020. For more information, see Deloitte’s EITF Snapshot newsletter as well as the press release on the FASB’s Web site.