Distinguishing Liabilities From Equity (April 2021)
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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 2021 edition includes updated
and expanded guidance as well as On the Radar,
a new section that briefly summarizes emerging issues and trends related to the
accounting and financial reporting topics addressed in the Roadmap.
This Roadmap replaces the Deloitte Q&As that were contained in
ASC 480. To find the text in the Roadmap that corresponds to a former Q&A,
select the “Liabilities From Equity” tab at the bottom of the Q&A to Roadmap Quick Reference
Guide and search for the Q&A’s number or title.
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.