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Roadmap Series

Distinguishing Liabilities From Equity

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Roadmap
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.
Note that 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.