# ASC 470-20-50: Debt — Debt with Conversion and Other Options — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/20/#50-disclosure) 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): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:c874d583a85428699f7c7f7861f447a2e534ce89ceb047c320ef7cfd13c4cf8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/470/20/#50-disclosure) SEC content: no ##### [470-20-50-1](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:21c306f7eed7848a18a7ef442411328c621c7b88aac2278b01c66abb946c1303 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 [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). #### Convertible Debt Instruments ##### [470-20-50-1A](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:d537cba854b4bc311f2e3a914632d0e1cc18304ebb9b342b3b56a1381a2f2a93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosure about convertible debt instruments is to provide users of financial statements with: 1. a Information about the terms and features of convertible debt instruments 2. b An understanding of how those instruments have been reported in an entity's statement of financial position and statement of financial performance 3. c Information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. ##### [470-20-50-1B](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1B) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:a1c5d1967b2dd3ab432c787f164a8d1f22b4403d7d9f7c813f4246b7a255318b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall explain the pertinent rights and privileges of each convertible debt instrument outstanding, including, but not limited to, the following information: 1. a Principal amount 2. b Coupon rate 3. c Conversion or exercise prices or rates and number of shares into which the instrument is potentially convertible 4. d Pertinent dates, such as conversion date(s) and maturity date 5. e Parties that control the conversion rights 6. f Manner of settlement upon conversion and any alternative settlement methods, such as cash, shares, or a combination of cash and shares 7. g Terms that may change conversion or exercise prices, number of shares to be issued, or other conversion rights and the timing of those rights (excluding standard antidilution provisions) 8. h Liquidation preference and unusual voting rights, if applicable 9. i Other material terms and features of the instrument that are not listed above. ##### [470-20-50-1C](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1C) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:0633bf234791262f11b89324bfbb9b6b4107a08a17b1de0147c00547b37835c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall provide the following incremental information for [contingently convertible instruments](https://asc.understandingaccounting.org/glossary/c/#contingently-convertible-instruments "Contingently convertible instruments are instruments that have embedded conversion features that are contingently convertible or exercisable based on either of the following: A market price trigger Multiple contingencies if one of the contingencies is a market price trigger and the instrument can be converted or share settled based on meeting the specified market condition. A market price trigger is a market condition that is based at least in part on the issuer's own share price. Examples of contingently convertible instruments include contingently convertible debt, contingently convertible preferred stock, and the instrument described by paragraph 260-10-45-43, all with embedded market price triggers.") or the instruments that are described in paragraphs [470-20-05-8 through 05-8A](https://asc.understandingaccounting.org/asc/470/20/#470-20-05-8): 1. a Events or changes in circumstances that would adjust or change the contingency or would cause the contingency to be met 2. b Information on whether the shares that would be issued if the contingently convertible securities were converted are included in the calculation of diluted earnings per share (EPS) and the reasons why or why not 3. c Other information that is helpful in understanding both the nature of the contingencies and the potential impact of conversion. ##### [470-20-50-1D](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1D) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:282176f581c3bc0cba27d3b7cb977db29e1f7c2bbbbe39cd32f1b67cf3154bc9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information for each convertible debt instrument as of each date for which a statement of financial position is presented. 1. a The unamortized premium, discount, or issuance costs and, if applicable, the premium amount recorded as paid-in capital in accordance with paragraph [470-20-25-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-25-13) 2. b The net carrying amount 3. c For [public business entities](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."), the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the entire instrument and the level of the fair value hierarchy in accordance with paragraphs [825-10-50-10 through 50-15](https://asc.understandingaccounting.org/asc/825/10/#825-10-50-10) . See Example 11 (paragraph [470-20-55-69A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69A)) for an illustration of this disclosure requirement. ##### [470-20-50-1E](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1E) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:4264782c783c9025990cf27cae25e8011199ddbf7c8d06bf4bd6542c3cc9a4fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information as of the date of the latest statement of financial position presented: 1. a Changes to conversion or exercise prices that occur during the reporting period other than changes due to standard antidilution provisions 2. b Events or changes in circumstances that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed 3. c Number of shares issued upon conversion, exercise, or satisfaction of required conditions during the reporting period 4. d Maturities and sinking fund requirements for convertible debt instruments for each of the five years following the date of most recent statement of financial position presented in accordance with paragraph [470-10-50-1](https://asc.understandingaccounting.org/asc/470/10/#470-10-50-1). ##### [470-20-50-1F](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1F) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:320741f0922e8194a23005932ae8e1863e09834c7e6ba25fbe71946e140ff2b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information about interest recognized for each period for which a statement of financial performance is presented: 1. a The effective interest rate for the period 2. b The amount of interest recognized for the period disaggregated by both of the following (see Example 12 \[paragraph [470-20-55-69D](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69D)\] for an illustration of this disclosure requirement): 1. 1 The contractual interest expense 2. 2 The amortization of the premium, discount, or issuance costs. ##### [470-20-50-1G](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1G) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:8ed4c2d5f2fcb82e63b7e62df765a9b7597c31f9161aa0f59517a33214428f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the conversion option of a convertible debt instrument is accounted for as a derivative in accordance with Subtopic 815-15, an entity shall provide disclosures in accordance with Topic 815 for the conversion option in addition to the disclosures required by this Section, if applicable. ##### [470-20-50-1H](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1H) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:87abcd350fc0cb0e83d883a02c70b98c7fcaab4009e5c8b01d9b39b8852118f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a convertible debt instrument is measured at fair value in accordance with the Fair Value Option Subsections of Subtopic 825-10, an entity shall provide disclosures in accordance with Subtopic 820-10 and Subtopic 825-10 in addition to the disclosures required by this Section, if applicable. ##### [470-20-50-1I](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1I) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:cc6f8abd0fddc011a748f06acc0b205ceba46ebcf22999490a8e29d2856e40f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information about derivative transactions entered into in connection with the issuance of convertible debt instruments within the scope of this Subtopic regardless of whether such derivative transactions are accounted for as assets, liabilities, or equity instruments: 1. a The terms of those derivative transactions (including the terms of settlement) 2. b How those derivative transactions relate to the instruments within the scope of this Subtopic 3. c The number of shares underlying the derivative transactions 4. d The reasons for entering into those derivative transactions. An example of a derivative transaction entered into in connection with the issuance of a convertible debt instrument within the scope of this Subtopic is the purchase of call options that are expected to substantially offset changes in the fair value or the potential dilutive effect of the conversion option. Derivative instruments also are subject to the disclosure guidance in Topic 815. #### EPS ##### [470-20-50-2](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:94d621e41d6a47e8d272245ad0b5374efa2159a2788ccad09d619574fb0d7873 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For disclosures about securities in relationship to earnings per share (EPS) disclosures, see paragraph [260-10-50-1(c)](https://asc.understandingaccounting.org/asc/260/10/#260-10-50-1). #### Own-Share Lending Arrangements Issued in Contemplation of Convertible Debt Issuance ##### [470-20-50-2A](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:2a3db18e9e9732ee4448e4d4ab0d2a471a5eab251eb0e35b3f0810f1679dd83b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that enters into a share-lending arrangement on its own shares in contemplation of a convertible debt offering or other financing shall disclose all of the following. The disclosures must be made on an annual and interim basis in any period in which a share-lending arrangement is outstanding. 1. a A description of any outstanding share-lending arrangements on the entity's own stock 2. b All significant terms of the share-lending arrangement including all of the following: 1. 1 The number of shares 2. 2 The term 3. 3 The circumstances under which cash settlement would be required 4. 4 Any requirements for the counterparty to provide collateral. 3. c The entity's reason for entering into the share-lending arrangement 4. d The fair value of the outstanding loaned shares as of the balance sheet date 5. e The treatment of the share-lending arrangement for the purposes of calculating earnings per share 6. f The unamortized amount of the issuance costs associated with the share-lending arrangement at the balance sheet date 7. g The classification of the issuance costs associated with the share-lending arrangement at the balance sheet date 8. h The amount of interest cost recognized relating to the amortization of the issuance cost associated with the share-lending arrangement for the reporting period 9. i Any amounts of dividends paid related to the loaned shares that will not be reimbursed. ##### [470-20-50-2B](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2B) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:3614ed4d468f3271c9f345d5a469103f4b4971f2263b9c84ce99cc0e55f89a0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that enters into a share-lending arrangement on its own shares in contemplation of a convertible debt offering or other financing shall also make the disclosures required by Topic 505. ##### [470-20-50-2C](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-2C) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:6d67a08cf210385e2917b3bd04971576675e4fa382a564a0fb3664ac6adc114f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the period in which an entity concludes that it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the counterparty to its share-lending arrangement will default, the entity shall disclose the amount of expense reported in the statement of earnings related to the default. The entity shall disclose in any subsequent period any material changes in the amount of expense as a result of changes in the fair value of the entity's shares or the probable recoveries. If default is probable but has not yet occurred, the entity shall disclose the number of shares related to the share-lending arrangement that will be reflected in basic and diluted earnings per share when the counterparty defaults. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [220-40-65-1](https://asc.understandingaccounting.org/asc/220/40/#220-40-65-1)In the period in which an entity concludes that it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the counterparty to its share-lending arrangement will default, the entity shall disclose the amount of expense reported in the statement of earnings related to the default. The entity shall disclose in any subsequent period any material changes in the amount of expense as a result of changes in the fair value of the entity's shares or the probable recoveries. If default is probable but has not yet occurred, the entity shall disclose the number of shares related to the share-lending arrangement that will be reflected in basic and diluted earnings per share when the counterparty defaults. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)In the interim or annual reporting period in which an entity concludes that it is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that the counterparty to its share-lending arrangement will default, the entity shall disclose the amount of expense reported in the statement of earnings related to the default. The entity shall disclose in any subsequent interim and annual reporting periods any material changes in the amount of expense as a result of changes in the fair value of the entity's shares or the probable recoveries. If default is probable but has not yet occurred, the entity shall disclose the number of shares related to the share-lending arrangement that will be reflected in basic and diluted earnings per share when the counterparty defaults. See paragraphs [220-40-50-21 through 50-25](https://asc.understandingaccounting.org/asc/220/40/#220-40-50-21) for additional disclosure requirements. ### Cash Conversion ##### [470-20-50-3](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:b1deac785d45bab7ff14f722234ac93da163ba1610eb3770191e38a6544e2f97 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/). ##### [470-20-50-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:99f7c1554f2e1037dde083d268ca0100e716a39457a9f4e1cf3f975941ff5ea5 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/). ##### [470-20-50-5](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:ee3167c691be27e5b685ecf8717940304e4b7a797594d2c71d9a7f7aff62e721 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/). ##### [470-20-50-6](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:40.076Z to 2026-09-10T00:31:40.076Z Record version: sha256:6083cb20ff4ad8a0bb1a59591da5d2636c7c0f59182359d38c1baaccc12db7ca 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/).