Convertible Debt (Before Adoption of ASU 2020-06)

Roadmap
Convertible Debt (Before Adoption of ASU 2020-06) (March 2023)

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This Roadmap provides an overview of the requirements in ASC 470-20 related to convertible debt before the amendments made by ASU 2020-06. It includes our insights into and interpretations of how this accounting guidance should be applied by entities that have not adopted ASU 2020-06.

This Roadmap will not be updated after 2023 because ASU 2020-06 is effective for all entities for fiscal years beginning after December 15, 2023. Entities that have adopted ASU 2020-06 should consider Deloitte’s Roadmap Issuer’s Accounting for Debt, which discusses the classification, initial and subsequent measurement, and presentation and disclosure of debt, including convertible debt.

Note that this Roadmap replaces the Deloitte Q&As that were contained in ASC 470. To find the text in the Roadmap that corresponds to a former Q&A, select the “Convertible Debt” tab at the bottom of the Q&A to Roadmap Quick Reference Guide and search for the Q&A’s number or title.

Also available is the latest edition of On the Radar, a high-level summary of emerging issues and trends related to the accounting and financial reporting topics addressed in the Roadmap.

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