# ASC 470-20-15: Debt — Debt with Conversion and Other Options — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/20/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:ca8df116030a781f2a1acd953661f6a3d662023dde74bbe52387c4e9d5b6e94d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/470/20/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [470-20-15-1](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:66807a27ea92751478cda2ff3147e5520e79115797284836de79336b4cdb0a03 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. #### Instruments ##### [470-20-15-2](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:6dda86c8238a25de2a4d1bea088266360ecba3545f72fa93ca0e47d1fa230272 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all debt instruments. The guidance on own-share lending arrangements applies to an equity-classified share-lending arrangement on an entity's own shares when executed in contemplation of a convertible debt offering or other financing. ##### [470-20-15-2A](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:296325d3bad3fd0ecf86813847308ab825e1636f768d761efa1e5f85402ca057 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance on convertible debt instruments in this Subtopic shall be considered after considering the guidance in the Fair Value Option Subsections of Subtopic 825-10 on financial instruments. ##### [470-20-15-2B](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2B) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:024ce589cea6dee277250809266afe9b6392a86c2bbb26a139ad9b71f87b0543 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance on convertible debt instruments in this Subtopic shall be considered after considering the guidance in Subtopic 815-15 on bifurcation of embedded derivatives for an embedded conversion option or other embedded feature (for example, an embedded prepayment option) as applicable (see paragraph [815-15-55-76A](https://asc.understandingaccounting.org/asc/815/15/#815-15-55-76A)). The relevant guidance in this Subtopic does not affect an issuer's determination under Subtopic 815-15 of whether an embedded conversion option or other embedded feature shall be separately accounted for as a derivative instrument. ##### [470-20-15-2C](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2C) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:2963c321d167e2a06c91beb20c5447bebc23ac9809b74fe777b34a82625c5094 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to a convertible debt instrument award issued to a grantee that is subject to the guidance in Topic 718 on stock compensation unless the instrument is modified as described in and no longer subject to the guidance in that Topic. The guidance in this Subtopic does not apply to stock-settled debt that is subject to the guidance in Subtopic 480-10 on distinguishing liabilities from equity or other Subtopics (see paragraph [470-20-25-14](https://asc.understandingaccounting.org/asc/470/20/#470-20-25-14)), unless the stock-settled debt also contains a substantive conversion feature (as discussed in paragraphs [470-20-40-7 through 40-10](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-7) ) for which all relevant guidance in this Subtopic shall be considered in addition to the relevant guidance in other Subtopics. ##### [470-20-15-2D](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2D) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:908cfafaf6bd00bea22583d354a0a730656c9fc1682beb7178e6200211a8602f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of determining whether an instrument is within the scope of this Subtopic, a convertible preferred stock shall be considered a convertible debt instrument if it has both of the following characteristics: 1. a It is a mandatorily redeemable financial instrument. 2. b It is classified as a liability under Subtopic 480-10. For related implementation guidance, see paragraph [470-20-55-1A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-1A). ### Cash Conversion ##### [470-20-15-3](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:854df5fe3af95492aff445581ff13576f557700430e3912e8ac73d96b4fab5f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [470-20-15-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:dfc5d2df97d2b0d8ac82a21de997e3a2c69d52c8be91813c030b3224dca652da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [470-20-15-5](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:ba7243a2e5778f5010a1cc6e088374a16594437ecaba23bee28f67c3b51b2333 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [470-20-15-6](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:15.782Z to 2026-09-10T00:31:15.782Z Record version: sha256:446ec5dc9815269e3102f1011cebff11a5bbb029e59cee3b36d31bd550e13dad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/).