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Roadmap Series

Distinguishing Liabilities From Equity

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Roadmap
Distinguishing Liabilities From Equity (April 2024)

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This Roadmap provides an overview of the guidance in ASC 480 as well as insights into and interpretations of how to apply it in practice. ASC 480 requires (1) issuers to classify certain types of shares of stock and certain share-settled contracts as liabilities or, in some circumstances, as assets and (2) SEC registrants to classify certain types of redeemable equity instruments as temporary equity.
The 2024 edition of the Roadmap includes updated and expanded guidance on the classification of certain types of contracts, the application of the deemed liquidation exception in ASC 480-10-S99-3A, and other topics. It is also assumed in the Roadmap that all entities have adopted the guidance in ASU 2020-06.
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.
Be sure to check out other titles in Deloitte’s Roadmap series, our comprehensive, easy-to-understand collection of accounting guides on selected topics of broad interest to the financial reporting community.