{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/480/10/#00-status","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"480","topic_title":"Distinguishing Liabilities from Equity","subtopic":"480-10","subtopic_title":"Overall","section":{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"480-10-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL104856577-128539\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/f/#financial-instrument\" class=\"term\" title=\"Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.\"><span>Financial Instrument</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2024-02/\" class=\"xref\">Accounting Standards Update No. 2024-02</a> </td> <td class=\"entry\">03/29/2024</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/n/#nonpublic-entity\" class=\"term\" title=\"Any entity other than one that meets any of the following criteria: Has equity securities that trade in a public market either on a stock exchange (domestic or foreign) or in an over-the-counter market, including securities quoted only locally or regionally Makes a filing with a regulatory agency in preparation for the sale of any class of equity securities in a public market Is controlled by an entity covered by the preceding criteria. An entity that has only debt securities trading in a public market (or that has made a filing with a regulatory agency in preparation to trade only debt securities) is a nonpublic entity.\"><span>Nonpublic Entity</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/o/#obligation\" class=\"term\" title=\"A conditional or unconditional duty or responsibility to transfer assets or to issue equity shares. Because Topic 480 relates only to financial instruments and not to contracts to provide services and other types of contracts, but includes duties or responsibilities to issue equity shares, this definition of obligation differs from the definition found in FASB Concepts Statement No. 6, Elements of Financial Statements, and is applicable only for items in the scope of that Topic. (P) December 16, 2024; (N) December 16, 2025105-10-65-9A conditional or unconditional duty or responsibility to transfer assets or to issue equity shares. This definition is applicable only for items within the scope of Topic 480.\"><span>Obligation</span></a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2024-02/\" class=\"xref\">Accounting Standards Update No. 2024-02</a> </td> <td class=\"entry\">03/29/2024</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/r/#registration-payment-arrangement\" class=\"term\" title=\"An arrangement with both of the following characteristics: It specifies that the issuer will endeavor to do either of the following: File a registration statement for the resale of specified financial instruments and/or for the resale of equity shares that are issuable upon exercise or conversion of specified financial instruments and for that registration statement to be declared effective by the U.S. Securities and Exchange Commission (SEC) (or other applicable securities regulator if the registration statement will be filed in a foreign jurisdiction) within a specified grace period Maintain the effectiveness of the registration statement for a specified period of time (or in perpetuity). It requires the issuer to transfer consideration to the counterparty if the registration statement for the resale of the financial instrument or instruments subject to the arrangement is not declared effective or if effectiveness of the registration statement is not maintained. That consideration may be payable in a lump sum or it may be payable periodically, and the form of the consideration may vary. For example, the consideration may be in the form of cash, equity instruments, or adjustments to the terms of the financial instrument or instruments that are subject to the registration payment arrangement (such as an increased interest rate on a debt instrument).\"><span>Registration Payment Arrangement</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/t/#transfer\" class=\"term\" title=\"The term transfer is used in a broad sense consistent with its use in FASB Concepts Statement No. 6, Elements of Financial Statements (such as in paragraph 137), rather than in the narrow sense in which it is used in Subtopic 860-10. (P) December 16, 2024; (N) December 16, 2025105-10-65-9The term transfer is used in a broad sense, rather than in the narrow sense in which it is used in Subtopic 860-10.\"><span>Transfer</span></a> (1st def.)</td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2024-02/\" class=\"xref\">Accounting Standards Update No. 2024-02</a> </td> <td class=\"entry\">03/29/2024</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-15-7\" class=\"xref\">480-10-15-7</a> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-15-7\" class=\"xref\">480-10-15-7</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a> </td> <td class=\"entry\">12/14/2016</td> </tr> <tr> <td class=\"entry\"> <div class=\"xref-range displayInline\"><a href=\"/asc/480/10/#480-10-15-7A\" class=\"xref\">480-10-15-7A through 15-7F</a></div> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-15-8\" class=\"xref\">480-10-15-8</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-07/\" class=\"xref\">Accounting Standards Update No. 2018-07</a> </td> <td class=\"entry\">06/20/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-15-8\" class=\"xref\">480-10-15-8</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-15-8A\" class=\"xref\">480-10-15-8A</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-45-2A\" class=\"xref\">480-10-45-2A</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-7EC309FA-3D05-4149-8A83-F72A48C06807.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2018-12 (PDF)</a> </td> <td class=\"entry\">09/10/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-45-2B\" class=\"xref\">480-10-45-2B</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-7EC309FA-3D05-4149-8A83-F72A48C06807.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2018-12 (PDF)</a> </td> <td class=\"entry\">09/10/2018</td> </tr> <tr> <td class=\"entry\"> <div class=\"xref-range displayInline\"><a href=\"/asc/480/10/#480-10-55-6\" class=\"xref\">480-10-55-6 through 55-9</a></div> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-55-55\" class=\"xref\">480-10-55-55</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-09/\" class=\"xref\">Accounting Standards Update No. 2018-09</a> </td> <td class=\"entry\">07/16/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-55-59\" class=\"xref\">480-10-55-59</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2018-09/\" class=\"xref\">Accounting Standards Update No. 2018-09</a> </td> <td class=\"entry\">07/16/2018</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/480/10/#480-10-65-1\" class=\"xref\">480-10-65-1</a> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a> </td> <td class=\"entry\">07/13/2017</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nFinancial Instrument | Amended | Accounting Standards Update No. 2024-02 | 03/29/2024 |\n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8781c7e07baef7bf252660f6770cd6ac73e15c37e97fb93973efceed29c4de8","downloaded_from":"2026-09-10T00:35:26.644Z","last_downloaded_at":"2026-09-10T00:35:26.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481909","source_sha256":"9017547d5a87c9564a05f50eb0e1da83fd8ed7318678b9c207682d9d5d2cc3db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c962e9d42e2d06ebc59b61372b86d6f306351a7c833ed96fc44481925812098","downloaded_from":"2026-09-10T00:35:26.644Z","last_downloaded_at":"2026-09-10T00:35:26.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481909","source_sha256":"9017547d5a87c9564a05f50eb0e1da83fd8ed7318678b9c207682d9d5d2cc3db"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:025aa91b051e6eda73ee28da4d2205808f6f5e5a13ebb2c6adf3b3ebee2212ed","downloaded_from":"2026-09-10T00:35:26.644Z","last_downloaded_at":"2026-09-10T00:35:26.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481909","source_sha256":"9017547d5a87c9564a05f50eb0e1da83fd8ed7318678b9c207682d9d5d2cc3db"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:025aa91b051e6eda73ee28da4d2205808f6f5e5a13ebb2c6adf3b3ebee2212ed","downloaded_from":"2026-09-10T00:35:26.644Z","last_downloaded_at":"2026-09-10T00:35:26.644Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481909","source_sha256":"9017547d5a87c9564a05f50eb0e1da83fd8ed7318678b9c207682d9d5d2cc3db"}}