Roadmap
Distinguishing Liabilities From
Equity (April 2024)
- Read the Roadmap.
- Open a PDF version of the Roadmap.
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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.