Deloitte
Accounting Research Tool
...
Appendix F — Roadmap Updates for 2023

Appendix F — Roadmap Updates for 2023

Appendix F — Roadmap Updates for 2023

The table below summarizes the substantive changes made in the 2023 edition of this Roadmap.
Section
Title
Description
Contingently Issuable Contracts
Enhanced discussion of contract analysis for freestanding equity-linked instruments that are contingently issuable, exercisable, or settleable and addressed when such instruments are embedded in a hybrid financial instrument. Updated Examples 2-6 and 2-7.
Examples
Expanded guidance in Example 3-8.
Adjustments Based on the Entity’s Stock Price
Enhanced discussion and added Example 4-5 to discuss warrants that allow holders to select the share price input used in a net share settlement.
Adjustments Based on a Percentage of Equity
Added Example 4-10 to address SEPAs.
Reimbursement of the Holder’s Taxes
Added section that discusses equity-linked financial instruments that require the entity to reimburse holder-specific taxes.
Identity of the Holder
Added section that discusses equity-linked instruments for which the settlement amount depends on the holder.
Adjustment Contingent on the Occurrence or Nonoccurrence of an IPO or a Change of Control
Expanded discussion to address considerations applicable to share-settleable earn-out arrangements.
Adjustments Based on a Formula or a Table
Added Connecting the Dots to discuss the engagement of specialists for assistance in evaluating make-whole tables.
Buy-In and Share Delivery Failure Payments
Added section that addresses how buy-in and share-delivery failure provisions affect indexation.
Cash Settlement Provisions in the Shares Underlying the Contract
Added section that discusses cash settlement provisions in the shares underlying an equity-linked instrument.
Net Cash Settlement Within the Entity’s Control
Added Connecting the Dots to address SEPAs.
Change of Control Clauses
Added Connecting the Dots to address the definition of a change of control.
Cash Payments Other Than Net Cash Settlements
Enhanced discussion of penalty payments and payments of stamp duties, transfer taxes, or other governmental charges that are obligations of the issuer.
Buy-In and Share Delivery Failure Payments
Added section to address how buy-in and share-delivery failure provisions affect classification.
No Required Cash Payment if Entity Fails to File on a Timely Basis
Added Connecting the Dots to address whether penalty payments preclude equity classification.
Initial and Subsequent Measurement
Added guidance on the accounting for issuance costs.
Settlements
Added Connecting the Dots to discuss the excise tax provision in the Inflation Reduction Act of 2022.
Modifications or Exchanges
Replaced discussions of the accounting before and after adoption of ASU 2021-04 with guidance on the accounting for modifications and exchanges.
Initial and Subsequent Measurement
Enhanced discussion of the allocation of proceeds and recognition of issuance costs associated with freestanding equity-linked instruments that are classified as assets or liabilities.
Modifications or Exchanges
Enhanced discussion of the accounting for modifications or exchanges of equity-linked instruments that are classified as assets or liabilities.
Standby Equity Purchase Agreements
Added section, including Example 6-4, to address the initial and subsequent accounting for SEPAs.