# ASC 470-20-55: Debt — Debt with Conversion and Other Options — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/470/20/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:2e9c1f34d21ade65b8fb4cd6a7ade67a6e4748b4f9ea8f22ee9392222f30f9f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 470-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/470/20/#55-implementation-guidance-and-illustrations) SEC content: no ##### [470-20-55-1](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:5b1042ac8c4de4fa8167691b7edbb7e30e4aedd8dc5cbf6d61931dcee0dd13b6 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 [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). #### Implementation Guidance ##### [470-20-55-1A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-1A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:07a806915635250ea91e2fd186937da0a763dcd54c29058e1283f873d7627e29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An example of a convertible preferred stock that paragraph [470-20-15-2D](https://asc.understandingaccounting.org/asc/470/20/#470-20-15-2D) requires an entity consider as a convertible debt instrument for purposes of the scope application of this Subtopic is a convertible preferred stock that has a stated redemption date and also would require the issuer to settle the face amount of the instrument in cash upon exercise of the conversion option.Such a convertible preferred stock is a mandatorily redeemable financial instrument and is classified as a liability under Subtopic 480-10 because it embodies an unconditional obligation to redeem the instrument by transferring assets at a specified or determinable date (or dates). #### Illustrations ##### [470-20-55-1B](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-1B) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3da40695311a10886494f966de83903746a62fa803b4952177916553ec24ccc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate application of the guidance in paragraph [470-20-40-16](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-16) to induced conversions of convertible securities: 1. a Reduced conversion price for conversion before determination date, increase in bond [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.") (Case A) 2. b Reduced conversion price for conversion before determination date, decrease in bond fair value (Case B). Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)The Cases in paragraphs [470-20-55-3 through 55-9](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-3) illustrate application of the guidance in paragraph [470-20-40-16](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-16)for measuring an expense when a convertible debt instrument is converted pursuant to an inducement offer: 1. a Reduced conversion price for conversion, increase in bond [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.") (Case A) 2. b Reduced conversion price for conversion, decrease in bond fair value (Case B). ##### [470-20-55-1C](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-1C) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:1893968f4892d2b3ecdedfe2bf71d31dcf7a5a1cbaa2f86581a9ea883f242d38 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)The Cases in paragraphs [470-20-55-9A through 55-9J](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9A) illustrate application of the guidance in paragraphs [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) and [470-20-40-13A](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13A) for determining whether an inducement offer includes the issuance of all of the consideration (in form and amount) issuable pursuant to conversion privileges provided in the terms of the existing debt instrument: 1. a Offer to settle convertible debt instrument in cash and warrants (Case C) 2. b Offer to settle convertible debt instrument in cash and shares (Case D) 3. c Offer to settle convertible debt instrument in shares and warrants (Case E). ##### [470-20-55-2](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:b26f3106f2066a32e99bc57323e86e5e23747a48d61ac895076bbfc3fce2d93d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For simplicity, the face amount of each security is assumed to be equal to its carrying amount in the financial statements (that is, no original issue premium or discount exists). ##### [470-20-55-3](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-3) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:20e10b32546c64966c1030f5d5532f8f86082d14e891c36844dc3d31958a14f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X4, Entity A issues a $1,000 face amount 10 percent convertible bond maturing December 31, 20X3. The carrying amount of the bond in the financial statements of Entity A is $1,000, and it is convertible into common shares of Entity A at a conversion price of $25 per share. On January 1, 19X6, the convertible bond has a fair value of $1,700. To induce convertible bondholders to convert their bonds promptly, Entity A reduces the conversion price to $20 for bondholders that convert before February 29, 19X6 (within 60 days). Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)
Editor's Note: The heading that precedes paragraph 470-20-55-3 will be amended upon transition as shown below. The content of the paragraph will not change.
• • > Case A: Reduced Conversion Price, Increase in Bond Fair Value
On January 1, 19X4, Entity A issues a $1,000 face amount 10 percent convertible bond maturing December 31, 20X3. The carrying amount of the bond in the financial statements of Entity A is $1,000, and it is convertible into common shares of Entity A at a conversion price of $25 per share. On January 1, 19X6, the convertible bond has a fair value of $1,700. To induce convertible bondholders to convert their bonds promptly, Entity A reduces the conversion price to $20 for bondholders that convert before February 29, 19X6 (within 60 days). ##### [470-20-55-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:aa4e87d3578bf8211eca57a944c610337d2135dfe12a2b76a26513bc599896f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assuming the market price of Entity A's common stock on the date of conversion is $40 per share, the fair value of the incremental consideration paid by Entity A upon conversion is calculated as follows for each $1,000 bond that is converted before February 29, 19X6. - ![](https://asc.understandingaccounting.org/asc-img/GUID-F31E429A-9446-48B5-8D55-12C4450F03B3-low.gif) Value of securities issued (a) " $2,000 " Value of securities issuable pursuant to original conversion privileges (b) " 1,600 " Fair value of incremental consideration $400 (a) Value of securities issued to debt holders is computed as follows: Face amount " $1,000 " ÷ New conversion price ÷ $20 per share Number of common shares issued upon conversion 50 shares × Price per common share × $40 per share Value of securities issued " $2,000 " (b) Value of securities issuable pursuant to original conversion privileges is computed as follows: Face amount " $1,000 " ÷ Original conversion price ÷ $25 per share Number of common shares issuable pursuant to original conversion privileges 40 shares × Price per common share × $40 per share Value of securities issuable pursuant to original conversion privileges " $1,600 " Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Assuming the market price of Entity A's common stock on the date the inducement offer was accepted is $40 per share, the fair value of the incremental consideration that will be paid by Entity A is calculated as follows for each $1,000 bond that is converted before February 29, 19X6. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D6E3CC14-0373-4779-A51A-DA63DD5B67FF-low.gif) Value of securities issued (a) " $2,000 " Value of securities issuable pursuant to existing conversion privileges (b) " 1,600 " Fair value of incremental consideration $400 (a) Value of securities issued to debt holders is computed as follows: Face amount " $1,000 " ÷ New conversion price ÷ $20 per share Number of common shares issued upon conversion 50 shares × Price per common share × $40 per share Value of securities issued " $2,000 " (b) Value of securities issuable pursuant to existing conversion privileges is computed as follows: Face amount " $1,000 " ÷ Existing conversion price ÷ $25 per share Number of common shares issuable pursuant to existing conversion privileges 40 shares × Price per common share × $40 per share Value of securities issuable pursuant to existing conversion privileges " $1,600 " ##### [470-20-55-5](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-5) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:44fb3f32343f5011e88a83a7c6d740ed3325521400f0ed6fd5604c6e98a0080a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Therefore, Entity A records debt conversion expense equal to the fair value of the incremental consideration paid as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D1F33C6C-85DE-48DF-A9D2-38F28478130F-low.gif) Debit Credit Convertible debt " $1,000 " Debt conversion expense 400 Common stock " $1,400 " Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Entity A concludes that it meets all of the criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13). Therefore, upon conversion, Entity A records debt conversion expense equal to the fair value of the incremental consideration paid as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-D1F33C6C-85DE-48DF-A9D2-38F28478130F-low.gif) Debit Credit Convertible debt " $1,000 " Debt conversion expense 400 Common stock " $1,400 " ##### [470-20-55-6](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:50318e915c229f6cd2da670959c5fd9a14f4aa622f987db4d1a6d2bec9f355de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. On January 1, 19X1, Entity B issues a $1,000 face amount 4 percent convertible bond maturing December 31, 20X0. The carrying amount of the bond in the financial statements of Entity B is $1,000, and it is convertible into common shares of Entity B at a conversion price of $25. On June 1, 19X4, the convertible bond has a fair value of $500. To induce convertible bondholders to convert their bonds promptly, Entity B reduces the conversion price to $20 for bondholders that convert before July 1, 19X4 (within 30 days). Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)
Editor's Note: The heading that precedes paragraph 470-20-55-6 will be amended upon transition as shown below. The content of the paragraph will not change.
• • > Case B: Reduced Conversion Price, Decrease in Bond Fair Value
On January 1, 19X1, Entity B issues a $1,000 face amount 4 percent convertible bond maturing December 31, 20X0. The carrying amount of the bond in the financial statements of Entity B is $1,000, and it is convertible into common shares of Entity B at a conversion price of $25. On June 1, 19X4, the convertible bond has a fair value of $500. To induce convertible bondholders to convert their bonds promptly, Entity B reduces the conversion price to $20 for bondholders that convert before July 1, 19X4 (within 30 days). ##### [470-20-55-7](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-7) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:99b1ab023d5fb5b7b715deb5b38f68a12a055360c08ad0df2dfb6d33f374279a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assuming the market price of Entity B's common stock on the date of conversion is $12 per share, the fair value of the incremental consideration paid by Entity B upon conversion is calculated as follows for each $1,000 bond that is converted before July 1, 19X4. - ![](https://asc.understandingaccounting.org/asc-img/GUID-C7B2869B-40D4-4FD3-99A7-AEAFEE474EF0-low.gif) Value of securities issued (a) $600 Value of securities issuable pursuant to original conversion privileges (b) 480 Fair value of incremental consideration $120 (a) Value of securities issued to debt holders is computed as follows: Face amount " $1,000 " ÷ New conversion price ÷ $20 per share Number of common shares issued upon conversion 50 shares × Price per common share × $12 per share Value of securities issued $600 (b) Value of securities issuable pursuant to original conversion privileges is computed as follows: Face amount " $1,000 " ÷ Original conversion price ÷ $25 per share Number of common shares issuable pursuant to original conversion privileges 40 shares × Price per common share × $12 per share Value of securities issuable pursuant to original conversion privileges $480 Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Assuming the market price of Entity B's common stock on the date the inducement offer was accepted is $12 per share, the fair value of the incremental consideration that will be paid by Entity B is calculated as follows for each $1,000 bond that is converted before July 1, 19X4. - ![](https://asc.understandingaccounting.org/asc-img/GUID-C4016606-7A1F-49C1-8260-6AB5DEA4BA05-low.gif) Value of securities issued (a) $600 Value of securities issuable pursuant to existing conversion privileges (b) 480 Fair value of incremental consideration $120 (a) Value of securities issued to debt holders is computed as follows: Face amount " $1,000 " ÷ New conversion price ÷ $20 per share Number of common shares issued upon conversion 50 shares × Price per common share × $12 per share Value of securities issued $600 (b) Value of securities issuable pursuant to existing conversion privileges is computed as follows: Face amount " $1,000 " ÷ Existing conversion price ÷ $25 per share Number of common shares issuable pursuant to existing conversion privileges 40 shares × Price per common share × $12 per share Value of securities issuable pursuant to existing conversion privileges $480 ##### [470-20-55-7A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-7A) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:be07d0baaf6fe146e68987923e4f6424cb3b8ebc18882be779c2eb70a4f15d79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Entity B is required to assess whether the criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) are met, including whether the conversion feature is substantive (in accordance with the guidance in paragraphs [470-20-40-6 through 40-10](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-6) ) as of both the time of issuance and the date the inducement offer is accepted by the convertible debt holder. If Entity B concludes that, on the basis of its facts and circumstances, all of the criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) are met, then it would account for the transaction as illustrated in paragraph [470-20-55-8](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-8). If Entity B determines that the criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) are not met, it should not account for the settlement transaction as an induced conversion. ##### [470-20-55-8](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-8) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9ba25bf57b3883119fe83f1adb3d6eabd94dbeae4c07968cede1205ccf18e85f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Therefore, Entity B records debt conversion expense equal to the fair value of the incremental consideration paid as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-64AA99F2-6D0D-4B0E-9191-736F8BB2D9F1-low.gif) Debit Credit Convertible debt " $1,000 " Debt conversion expense 120 Common stock " $1,120 " Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)If Entity B determines that the criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) are met, upon conversion, Entity B would record debt conversion expense equal to the fair value of the incremental consideration paid as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-64AA99F2-6D0D-4B0E-9191-736F8BB2D9F1-low.gif) Debit Credit Convertible debt " $1,000 " Debt conversion expense 120 Common stock " $1,120 " ##### [470-20-55-9](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:987439b17afc7987d0ddd00b576f831c09271bb1f1d66389ed2be8e6c7fb3a36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The same accounting would apply if, instead of reducing the conversion price, Entity B issued shares pursuant to a tender offer of 50 shares of its common stock for each $1,000 bond surrendered to the entity before July 1, 19X4. See paragraph [470-20-40-14](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-14). ##### [470-20-55-9A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9A) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:2f536625f4ee8736bc8f1fb70f37a8e830afdef79ab1d82a52086c44b70841f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)On January 1, 2X24, Entity A issues a $1,000 face amount 10 percent convertible bond maturing December 31, 2X33. The bond has a conversion price of $25 per share. The terms of the existing instrument require that, upon conversion, the issuer settle the principal in cash and the conversion premium in any combination of cash and shares. Under the existing conversion privileges, the total amount of cash (or the total value of the cash and shares) required to be issued upon conversion equals the product of 40 shares per $1,000 bond and a volume-weighted average price of Entity A’s common stock. The volume-weighted average price is calculated over a period of 40 days beginning the day after the holder notifies the issuer that it will convert the debt instrument. On May 15, 2X27, to induce convertible bondholders to convert their bonds promptly, Entity A offers the following consideration in exchange for each $1,000 bond that is converted within 60 days (for purposes of this Example, assume the offer meets the other criteria in paragraph [470-20-40-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) and that the offer is accepted by bondholders on June 1, 2X27): 1. a A cash payment equal to 40 shares multiplied by the volume-weighted average price of Entity A’s common stock calculated over a period of 15 days (beginning the day after the holder accepts the inducement offer) 2. b Five warrants (offered as a sweetener). Each warrant enables the holder to acquire a share of Entity A’s common stock at a fixed exercise price of $40. The warrants are exercisable upon issuance and expire five years after issuance. ##### [470-20-55-9B](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9B) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:76d2f391ac1aa8b2ae25644afa3c2f1e46424b9f56e4e41c3e8946f860bc8b12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Assume that the fair value of Entity A’s common stock on the date the inducement offer was accepted (June 1, 2X27) is $40 per share. To evaluate whether the inducement offer meets the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13), Entity A would compare the form and amount of consideration offered with the form and amount of consideration that would be issued upon conversion pursuant to the terms of the existing instrument. The conversion privileges in the existing instrument require Entity A to settle the principal in cash and permit Entity A to settle the conversion premium in any combination of cash and shares. ##### [470-20-55-9C](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9C) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:1a21ed3b578111af6521afc45f6ec1a49e27fbaad93d0918ada3ba3a1fd5ea19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)In this Case, the inducement offer includes the form (entirely cash) and amount ($1,600) of consideration required to settle both the principal ($1,000) and the conversion premium ($600) pursuant to the conversion privileges provided in the terms of the existing debt instrument. The amount of $1,600 is the product of 40 shares and the fair value of Entity A’s shares at the offer acceptance date ($40). ##### [470-20-55-9D](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9D) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9757da6de5c6373d8c86457e6ee4ba544de92cd7d964995fd9555e5395adc661 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)The offer of warrants to induce conversion does not affect the assessment of whether the inducement offer includes the form and amount of consideration issuable under the existing conversion privileges because the existing conversion privileges did not provide for the issuance of warrants (however, the offer of warrants as a sweetener affects the measurement of the debt conversion expense recognized in accordance with paragraph [470-20-40-16](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-16)). Similarly, the fact that the inducement offer changes the number of days over which the volume-weighted average price of Entity A’s shares is measured does not affect whether the inducement offer includes the amount of consideration issuable under the existing conversion privileges because Entity A would use the fair value of its common stock as of the offer acceptance date to calculate the amount of cash payable under both the conversion privileges in the existing instrument and the inducement offer in accordance with paragraph [470-20-40-13A(a)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13A). Therefore, the inducement offer satisfies the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13). - ![](https://asc.understandingaccounting.org/asc-img/GUID-5697D545-6CE4-4431-8579-C024AE25B181-low.gif) Consideration Issuable Pursuant to Existing Conversion Privileges Principal Cash " $1,000 " Conversion premium "Any combination of cash and shares with a total value of $600. If $600 of the conversion premium is settled in cash, then the conversion premium would be settled as follows:" Cash and $600 Shares (a) 0 shares Consideration Issuable Pursuant to Inducement Offer Cash and " $1,600 " Warrants 5 warrants (a) Number of shares issuable pursuant to existing conversion privileges is computed as follows: Value of 40 shares (40 shares × $40 per share as of the offer acceptance date) " $1,600 " − Face amount − " $1,000 " Value of conversion premium $600 Value of conversion premium $600 Amount of conversion premium settled in cash − $600 Value of conversion premium to be settled in shares $0 ##### [470-20-55-9E](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9E) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:f3e8c8a99ef1c595f544d8fda3a0e3ab7417a1eff69e130215cf4f50bbda1f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Assume the same facts as in Case C, except that Entity A offers the following consideration (instead of the consideration listed in paragraph [470-20-55-9A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9A)): 1. a A cash payment of $1,400 2. b Ten shares of Entity A’s common stock. ##### [470-20-55-9F](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9F) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:89f10deec86c2f477e5c33b9b552b01cfe8799c3e7beb67cf11f75296770cd13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)To evaluate whether the inducement offer meets the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13), Entity A would compare the form and amount of consideration offered with the form and amount of consideration that would be issued upon conversion pursuant to the terms of the existing instrument. The conversion privileges in the terms of the existing instrument require Entity A to settle the principal in cash and permit Entity A to settle the conversion premium in any combination of cash and shares. ##### [470-20-55-9G](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9G) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:0b44a606896f97d673760ab2c9d3ae726308b91284c41af1b39bf345c7671fd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)In this Case, the inducement offer includes the form (cash) and amount ($1,000) of consideration required to settle the principal pursuant to the conversion privileges provided in the terms of the existing debt instrument. Under the existing conversion privileges, the remaining settlement value of $600 can be settled in any combination of cash and shares. If $400 ($1,400 total cash payment − $1,000 principal) of the conversion premium is settled in cash, then the inducement offer must provide for at least 5 shares ($200 remaining conversion premium ÷ $40 share price) of Entity A’s common stock to provide the same form (cash and shares) and at least the same amount of cash and shares that would have been provided under the conversion privileges of the existing instrument. Because the inducement offer illustrated in Case D includes 10 shares, it would satisfy the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13). The fact that the inducement offer eliminates the volume-weighted average price formula contained in the existing conversion privileges and instead offers a specified amount of cash and shares does not affect whether the inducement offer includes the amount of consideration issuable under the existing conversion privileges because Entity A would use the fair value of its common stock as of the offer acceptance date to calculate the amount of cash payable and shares issuable under the conversion privileges in the existing instrument in accordance with paragraph [470-20-40-13A(a)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13A). - ![](https://asc.understandingaccounting.org/asc-img/GUID-4035D57C-F631-4721-A2BB-8AE6D9BCAF51-low.gif) Consideration Issuable Pursuant to Existing Conversion Privileges Principal Cash " $1,000 " Conversion premium "Any combination of cash and shares with a total value of $600. If $400 of the conversion premium is settled in cash, then the conversion premium would be settled as follows:" Cash and $400 Shares (a) 5 shares Consideration Issuable Pursuant to Inducement Offer Cash and " $1,400 " Shares 10 shares (a) Number of shares issuable pursuant to existing conversion privileges is computed as follows: Value of 40 shares (40 shares × $40 per share as of the offer acceptance date) " $1,600 " − Face amount − " $1,000 " Value of conversion premium $600 Value of conversion premium $600 Amount of conversion premium settled in cash − $400 Value of conversion premium to be settled in shares $200 Value of conversion premium to be settled in shares $200 ÷ Price per share (as of the offer acceptance date) ÷ $40 Number of shares issued to satisfy conversion premium 5 shares ##### [470-20-55-9H](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9H) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:236c468340f30886985ae37468a9034d454015de45df62bbd7552bc8ef004196 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)Assume the same facts as in Case C, except that Entity A offers the following consideration (instead of the consideration listed in paragraph [470-20-55-9A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9A)): 1. a Forty shares of Entity A’s common stock 2. b Five warrants (offered as a sweetener). Each warrant enables the holder to acquire a share of Entity A’s common stock at a fixed exercise price of $40. The warrants are exercisable upon issuance and expire five years after issuance. ##### [470-20-55-9I](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9I) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:8d585f9763b3a174f30e2fb11f6247cb9c9068fd9d629bda0a90c55760c60414 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)To evaluate whether the inducement offer meets the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13), Entity A would compare the form and amount of consideration offered with the form and amount of consideration that would be issued upon conversion pursuant to the terms of the existing instrument. The conversion privileges in the terms of the existing instrument require Entity A to settle the principal in cash and permit Entity A to settle the conversion premium in any combination of cash and shares. ##### [470-20-55-9J](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-9J) Pending content: yes Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:500b7275e67092f164b8cf1e44589ed3ddbd0384fd13ddd0ab675c2c6c07b947 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2025; (N) December 16, 2025Transition guidance: [470-20-65-4](https://asc.understandingaccounting.org/asc/470/20/#470-20-65-4)In contrast to Case C and Case D, the inducement offer does not include the issuance of all the consideration (in form and amount) issuable pursuant to the conversion privileges included in the terms of the existing instrument. The terms of the existing instrument require settlement of the principal amount in cash, but Entity A did not offer cash consideration in the inducement offer. Therefore, Entity A would conclude that the criterion in paragraph [470-20-40-13(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-13) is not satisfied. ##### [470-20-55-10](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:d9e554fba4d7169d4d0d74da886451297c6287fd6293833bf90b8c9138919c1b 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/). ##### [470-20-55-11](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:598b3a3bb76ad62d14fdd55a48aec3a44f84660defdb2dcf3b534040637bb6d2 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/). ##### [470-20-55-12](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:567c7774c1fcb20edb8fe9afcbd418a578372addbd9e5efe1875e9370a4515cc 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/). ##### [470-20-55-13](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9e5c248f23a07ec20f3cbbd35dec0628fc79bd092e3edd97263df28f295b662a 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/). ##### [470-20-55-14](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:a4d7dc27dc7eab00ff23288c2ff93d0e3b90ef1b8601122c1ea62f7528081070 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/). ##### [470-20-55-15](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3cb926aea73c0dfd525cc181446c36dfab9a8be2f310cfcaac66669d479620d9 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/). ##### [470-20-55-16](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:b078cb06789a6564c2da088c1f75c20ed265c85e1d6efe35bc2a37508614bb72 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/). ##### [470-20-55-17](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:f90b0ce07492d1252d8f00f0abd348dbd269c3588f5fb18c67d88ac496b40a48 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/). ##### [470-20-55-18](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:411a3e99a2c5f9be8abca917a008983673c87a098485769034cffb6bd43993aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [470-20-25-14](https://asc.understandingaccounting.org/asc/470/20/#470-20-25-14). ##### [470-20-55-19](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:cf5dea1fa12dfc7baaa1707afe86f5272527ade7c9fc802ed20c9990dc321904 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the conversion price was described as $1 million divided by the market price of the common stock on the date of the conversion, that is, resetting at the date of conversion, the holder is guaranteed to receive $1 million in value upon conversion and, therefore, the debt instrument would be considered stock-settled debt. ##### [470-20-55-19A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-19A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:57f890672a4828b640c52b2beeb313246d4311ca4ab05564c7ca75553e480f4f 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/). ##### [470-20-55-20](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:2bdc7172595a3c320702383dcffe09c00199d15e6e963a86f3005fb4feffbc71 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/). ##### [470-20-55-21](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:22ee772c60107176b5cbd96b73ee416660b7d3974bcbcbcdaaaf4d4116cf1a04 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/). ##### [470-20-55-22](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c3917eda467285cfd6da3df4ba3d39c1add299ad4aa30a2aed37a9880f4cf3f2 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/). ##### [470-20-55-23](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:4f02c37c7db8e5efe2c1111499d6a1180937d075462ae72e04baf8b3762c59f7 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/). ##### [470-20-55-24](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:50956de3c175e575c4ff706d4cb0fd19147b464bd1437439896ffc62b2448d0f 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/). ##### [470-20-55-25](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3c3d3f57f20ba28fc354656e27b596abbd452655d5b160dab0aa5275f1aeefec 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/). ##### [470-20-55-26](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:78d0d4d6a8eb62e272aaddc810b107490a9352ca589c75a7d2bc42dad76d8fa2 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/). ##### [470-20-55-27](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:32e59fdc1d11d5ed48fbb06b7746df7a588871b03a02a3373ee70399c41f0ff8 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/). ##### [470-20-55-28](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9c7e1ee36f87e16fb67bbfced8ec34174a0b8f11e37191c677f5673d5d536bbb 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/). ##### [470-20-55-29](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:a09c8bcde910e47743c77dd53c030612c1494903377854e4b0e9508ca4b83594 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/). ##### [470-20-55-30](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:145b845fbd417abd76e6b18eca37aa78ff89a7eb3ca2edf75107ace3ceaaaf40 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/). ##### [470-20-55-31](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:be19855a54268e36d2dba545f06035398cd4d8108dfaedd90beb1cc90da0f731 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/). ##### [470-20-55-32](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c5b86d3e7cea7eb9355b3cf8162b060a10357980e8a12c263dac92755e7e97d9 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/). ##### [470-20-55-33](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:dab8bcd690a62177e813732720665bd12f1d2ddd5111fc2562bf558b1e279ceb 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/). ##### [470-20-55-34](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:be350478278dad6f908fbdecef579428e2ade9469d3db6f284834acf7f204a3a 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/). ##### [470-20-55-35](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3cafa507a803b50586badcff8683b12fbd2e71e5414b6ab8492e80c720dc8ebe 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/). ##### [470-20-55-36](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:24cac77ac2a12a4ca4f5c821e38fab93f0ce0fef26159455a608b375e5db4045 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/). ##### [470-20-55-37](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:8d2ffd8504aa389d8fc39337f7655a4aa4f7ecd5e2a8484d07898da9b32ab139 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/). ##### [470-20-55-38](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:96d47d8bc679f3d0ad261340310dc57f202ad67b2f7751365ca40d3a5881055c 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/). ##### [470-20-55-39](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:fca9e86080bfa63b472e906f88fb42be9bd80518f6e1a39eb4b144703b9fbaa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-40](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:f136f2e31fb8e9f0ef93ae35d8a96509ae4da4d79cb105654cd4e6301a3433c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-41](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-41) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c593ee499ff557708b8d62f4f1001c44edf4bdffa6194e40d179443df3378be8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-42](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-42) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:2a157c0ce367eb797db33e44a09522fa90b834e6e6448b7da477e63ec518962d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-43](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-43) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:15c6c272085f65d993c456a6598eeb14f080d0bdece2bec6d068eb399f249070 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-44](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-44) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:86aa119551983feed54e089dc034e6a3a221aa90ce960693dc4ad9239c0f1d17 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/). ##### [470-20-55-45](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-45) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:0de46dc376979429d0a73f2f153120d4ca416cf3bcf91a71e271af461c396066 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/). ##### [470-20-55-46](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-46) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:fe625a9bb3f89823c826606053abe254f69eac3e406ae2189fe7ba1c9158d4e5 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/). ##### [470-20-55-47](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-47) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:79fc02b6576c015695fade9f674b4841590d4793600473290a3aa708d64567ae 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/). ##### [470-20-55-48](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-48) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:8683a772b80a4b4a2e3545f67270807ab7518a9bfaaa0ca0ff7aba201a97b3a5 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/). ##### [470-20-55-49](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-49) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:852b4d39f4fe308062c81a0c60a136755724531970a9f6b2b5e757b25eb73833 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/). ##### [470-20-55-50](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-50) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:a66e556ea9083dac286520b9516a1cc5c48e96ac5794a2ec10c12f87cdbed8aa 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/). ##### [470-20-55-51](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-51) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9af5bc5805dbc596c488a8fbbd93e673e70559bddd437bd149333334b5016e1b 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/). ##### [470-20-55-52](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-52) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:1f7b7bffeb20d22876dbb631559c80700b58ed7cf095a70c97206ef1c76e8234 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/). ##### [470-20-55-53](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-53) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:dbbad45daac12be528f5336870478b9f056363e4583d046f04d960394e7091dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-54](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-54) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:10a388e1ddc470b464a0c0570b76c742c129bdfa3931ed5832b647cc9e6172e0 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/). ##### [470-20-55-54A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-54A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:d5dd810bc05113db0ae5e1ffe7172e069bc0bbb9e8c4935772b9deafdcf10f57 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/). ##### [470-20-55-55](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-55) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:8adca874d2be9725b9c1de720742e1a298fc6427319b9803efc65c892bc5da47 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/). ##### [470-20-55-56](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-56) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3406bea0895df47b9dea59eb1d16c885c019fecf27545d00e71870a2fa58fb18 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/). ##### [470-20-55-57](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-57) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:6aff59486cd254970219bc60273071e6da248b318fd53fbe2913e4ddfd5c80c1 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/). ##### [470-20-55-58](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-58) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:55c3578e638ce5ddaa1313bc907001feaf0cdaf863ba442d1d45b32cab34bec0 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/). ##### [470-20-55-59](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-59) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3aa8d22601f09f9fad8355cc7a7a27ee836b6ee3f5e2c816ededb8a110b2b46d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [470-20-55-60](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-60) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:fca5b2e5a0937bd3323be950442b48568fad675e68c5c3da29c1a325b9801b92 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/). ##### [470-20-55-60A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-60A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:67f8ea97f421090a6c063785f60a5f22ee8a43f5ebf2facb4184129b855f1a26 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/). ##### [470-20-55-61](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-61) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:5b76dc2f95df620f23b33583e9aae81fdfbf92719fe90548de2241c475c12dd0 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/). ##### [470-20-55-62](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-62) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:27da1b577843ae63ef2164ec454aa8934fe2530e65f76dc83589dd98d9b92301 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/). ##### [470-20-55-63](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-63) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:021210004129e003089de90de8e10dd16ae5493ed71352472a86af72909b1d1f 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/). ##### [470-20-55-64](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-64) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c0ce9464e20af93aec0fe0c7f09044ab6a83e111e5f6b0aaca2418fa06bbe5b2 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/). ##### [470-20-55-65](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-65) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:30423ba5d662dab7c247b7d1734b3d8c6970abfe05d04edbc26145f52f3a39b1 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/). ##### [470-20-55-66](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-66) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:295e29511771367e1b580e04adeb03426b7bd6196bac8ad819e18ade2750cd0b 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/). #### Example 9: Illustration of a Conversion of an Instrument that Becomes Convertible Upon the Issuer's Exercise of a Call Option ##### [470-20-55-67](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-67) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:3190fda4ea65c6db19fc997373d152306425a99ec5122f099972206917a4aabd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates an instrument subject to the guidance in paragraphs [470-20-40-5 through 40-9](https://asc.understandingaccounting.org/asc/470/20/#470-20-40-5) . ##### [470-20-55-68](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-68) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:431166dd90972b3198e6fc23d66c1560d73f75e45ce54a1c18d1c8802d9dcab8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity issues a contingently convertible instrument on January 1, 2006, with a market price trigger, a $1,000 par amount, and a maturity date of December 31, 2020. The debt instrument is convertible at the option of the holder if the share price of the issuer exceeds a specified amount. The issuer can call the debt at any time between 2009 and the maturity date of the debt. If the issuer calls the debt, the holder has the option to receive cash for the call amount or a fixed number of shares as specified in the terms of the instrument upon issuance, regardless of whether the market price trigger has been met. In 2010, the issuer calls the debt before the market price trigger being met and the holder elects to receive a fixed number of shares (as specified in the terms of the instrument). ##### [470-20-55-69](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9d8a744b50a06c82fbdd778b566c1ea3d72dfb88c160da2806f6488c46be1377 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/). #### Example 11: Disclosure of the Information in the Statement of Financial Position ##### [470-20-55-69A](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69A) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:360891612fd6f4dba4eaeae6033b0dc54c342d7e09636d562916a8e6d3f781ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of the guidance in paragraph [470-20-50-1D](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1D) based on the assumption that Entity A is a public business entity and has two convertible debt instruments outstanding as of December 31, 20X7, and 20X6. ##### [470-20-55-69B](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69B) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:38102ebe3afc29bcf6ca5673b1701e2211a3e1303a30e1f0e4004ab91aadbb2d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the disclosures in a tabular format. - ![](https://asc.understandingaccounting.org/asc-img/GUID-E72B7729-8AD9-49CE-B7FF-34B242E75ED4-low.gif) "The following is a summary of Entity A's convertible debt instruments as of December 31, 20X7 (in thousands)." Unamortized Debt Principal Discount and Net Carrying Fair Value Amount Issuance Costs Amount Amount Leveling Leveling "1.2% convertible debt due on December 31, 20X8" " $1,000 " $(18) $982 " $1,100 " Level 2 "Zero-coupon convertible debt due on December 31, 20X9" 500 (9) 491 462 Level 3 "The following is a summary of Entity A's convertible debt instruments as of December 31, 20X6 (in thousands)." Unamortized Debt Principal Discount and Net Carrying Fair Value Amount Issuance Costs Amount Amount Leveling Leveling "1.2% convertible debt due on December 31, 20X8" " $1,000 " $(35) $965 " $1,015 " Level 2 "Zero-coupon convertible debt due on December 31, 20X9" 500 (14) 486 450 Level 3 ##### [470-20-55-69C](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69C) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:8be0c25e30f19722ce739717f0ca118ad9a5b4df977e2b077941c1f178832fd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures may be provided alternatively in narrative descriptions. - **1.2 Percent Convertible Debt Instrument Due on December 31, 20X8** - As of December 31, 20X7, and 20X6, the net carrying amount of the convertible debt instrument was $982,000 and $965,000, respectively, with unamortized debt discount and issuance costs of $18,000 and $35,000. The estimated fair value (Level 2) of the convertible debt instrument was $1,100,000 and $1,015,000, respectively, as of December 31, 20X7, and 20X6. - **Zero-Coupon Convertible Debt Instrument Due on December 31, 20X9** - As of December 31, 20X7, and 20X6, the net carrying amount of the convertible debt instrument was $491,000 and $486,000, respectively, with unamortized debt discount and issuance costs of $9,000 and $14,000. The estimated fair value (Level 3) of the convertible debt instrument was $462,000 and $450,000, respectively, as of December 31, 20X7, and 20X6. #### Example 12: Disclosure of the Information in the Statement of Financial Performance ##### [470-20-55-69D](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69D) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:ff3efea5bcbf3af20a2f41fd64b04680c59784f9afcba097a58a191ca2d41397 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of the guidance in paragraph [470-20-50-1F(b)](https://asc.understandingaccounting.org/asc/470/20/#470-20-50-1F) based on the assumption that Entity A has two convertible debt instruments issued before January 1, 20X5, and still outstanding as of December 31, 20X7. ##### [470-20-55-69E](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69E) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:602d2a8e458a72569183748a5aa9324c609a56e84c8f4483703babaf87ab28b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the disclosures in a tabular format. - ![](https://asc.understandingaccounting.org/asc-img/GUID-B6DCDEFB-584A-4CCD-8A37-DD1156CEB944-low.gif) The following provides a summary of the interest expense of Entity A's convertible debt instruments (in thousands). "Year Ended December 31, " 20X7 20X6 20X5 Coupon interest $12 $12 $12 Amortization of debt discount and issuance costs 22 22 21 Total $34 $34 $33 ##### [470-20-55-69F](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-69F) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:966725c72f20ab35da00da5a5196888eb45fd16e3bc4d1bdaaac26c2e5279a0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures may be provided alternatively in narrative descriptions. - For the years ended December 31, 20X7, 20X6, and 20X5, the total interest expense was $34,000, $34,000, and $33,000 with coupon interest expense of $12,000 for each year and the amortization of debt discount and issuance costs of $22,000, $22,000, and $21,000, respectively. ### Cash Conversion ##### [470-20-55-70](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-70) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:75a3051405a1e930500532cb27b4234314f2808d1d4fb68946bf7102530e5dbc 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/). ##### [470-20-55-71](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-71) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:d1ab3ab34d230168d068b7bd86349cc26211c8888f49e8004b16ef2124a02a74 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/). ##### [470-20-55-72](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-72) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c46ba84ce63d1d26b22301b636586e024841e7e4b9b1811789b2ca20a5e116e6 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/). ##### [470-20-55-73](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-73) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:dacf42413b389cc5d68fa59fa19ede8e3f951fa86cbaa4b6fa4ee633602d29b9 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/). ##### [470-20-55-74](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-74) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:5d94fb103d1302b6bbb1d87156c59569c9ca72e62a16727b5b9f7945a2a92bcc 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/). ##### [470-20-55-75](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-75) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9a203fc2d3fe2ed5a3ba1a8edd35b27f177463214c22373d0e2aa23d371ce9d9 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/). ##### [470-20-55-76](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-76) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:9cd7d07f183fb56a344b3e464a3a83789cd72538b422f545e8d6cf5b113ddcd2 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/). ##### [470-20-55-77](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-77) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:98d8d30e53aef8d2c6b09ac3dfd702d4eb09e461f621d46925cf58bd38d6a7db 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/). ##### [470-20-55-78](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-78) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:d7d779af7ff26e23b27c2c4a6c961b3b49761a930f2f822b38f7bba790e70df2 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/). ##### [470-20-55-79](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-79) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:bb3e5f54d3865f7294dc2322c6b61742fc6ee0d31426fc7f7770e129b4077aa8 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/). ##### [470-20-55-80](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-80) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:ba417b2107f13188bb917bbbc663eae131af46ffc30d00c18b70f29200b95aa1 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/). ##### [470-20-55-81](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-81) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:a5632f63c3b092cad1f0f6c6c1969b32c72a4573d78f2c0c0a1539e004400f28 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/). ##### [470-20-55-82](https://asc.understandingaccounting.org/asc/470/20/#470-20-55-82) Pending content: no Source downloaded (UTC): 2026-09-10T00:31:43.124Z to 2026-09-10T00:31:43.124Z Record version: sha256:c24ac6a58a21ec06047ca6355e1960e88c48d284867252fd5960a17a1de76fa8 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/).