Preface
We are pleased to present the 2024 edition of Contracts on an
Entity’s Own Equity. This Roadmap provides an overview of the guidance in
ASC 815-401 as well as insights into and interpretations of how to apply it in practice.
For ease of reference, we have accompanied our discussion with the related
authoritative text.
It is assumed in this edition that an entity has adopted ASU
2020-06. We have therefore removed from the Roadmap discussions of the accounting
before adoption of the ASU’s guidance. The 2024 edition also contains new and
expanded guidance on various topics. Appendix F outlines significant changes made
since the issuance of the 2023 edition of the Roadmap.
Be sure to check out On the Radar (also available
as a stand-alone publication), which briefly
summarizes emerging issues and trends related to the
accounting and financial reporting topics addressed in the
Roadmap.
We hope you will find this Roadmap to be a useful resource in
determining the appropriate accounting for contracts on an entity’s own equity, and
we welcome your suggestions for improvements to it. If you need
assistance applying the guidance or have other questions about this topic, we
encourage you to consider consulting our technical specialists and other professional
advisers.
Footnotes
1
For a list of abbreviations used in this publication, see
Appendix E.
For the full titles of standards, topics, and regulations used in this
publication, see Appendix
D.