FASB Issues Guidance on Freestanding Equity-Classified Written Call Options
May 3, 2021
The FASB has issued Accounting Standards Update (ASU) No. 2021-04, Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options — a consensus of the FASB Emerging Issues Task Force. The ASU provides a “principles-based framework to determine whether an issuer should recognize the modification or exchange as an adjustment to equity or an expense.”
For more information, see Deloitte’s EITF Snapshot newsletter and the press release on the FASB’s Web site.