Distinguishing Liabilities From Equity

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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. Appendix G of the Roadmap highlights new content in the 2020 edition as well as substantive revisions to previous text.

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.

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