Appendix B — Checklists for Determining Whether Freestanding Contracts or Embedded Features Qualify as Equity
The three checklists in this appendix are intended to help a practitioner determine whether the following types of contracts or features qualify as equity under ASC 815-40:
- Freestanding contracts.
- Features embedded in hybrid contracts other than certain types of convertible debt.
- Features embedded in certain types of convertible debt.