FASB Ratifies EITF Consensus-for-Exposure

At its September 16, 2020, meeting, the FASB ratified the EITF’s consensus-for-exposure on Issue 19-C, “Warrant Modifications: Issuers’ Accounting for Modifications of Equity Classified Freestanding Call Options That Are Not Within the Scope of Topic 718, Compensation—Stock Compensation, or Topic 815—Derivatives and Hedging,” and directed its staff to draft a proposed Accounting Standards Update for a vote by written ballot.

For more information, see Deloitte’s EITF Snapshot as well as the tentative Board decisions on the FASB’s Web site.