Roadmap
Distinguishing Liabilities From
Equity (March 2023)
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This Roadmap provides an overview of
the guidance in ASC 480-10 as well as insights into and interpretations of how to
apply it in practice. ASC 480-10 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 2023 edition of the Roadmap
includes updated and expanded guidance on distinguishing between put warrants and
net-cash-settled written call options, the application of the deemed liquidation
exception in ASC 480-10-S99-3A, determining whether remeasurement is required when
the holders of a convertible instrument control the issuer, and other topics.
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.