{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/480/10/#10-objectives","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":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"480-10-10-1","para":"10-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_649E4E0C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The objective of this Subtopic is to require issuers to classify as liabilities (or assets in some circumstances) three classes of <a href=\"/glossary/f/#freestanding-financial-instrument\" class=\"term\" title=\"A financial instrument that meets either of the following conditions: It is entered into separately and apart from any of the entity's other financial instruments or equity transactions. It is entered into in conjunction with some other transaction and is legally detachable and separately exercisable.\"><span>freestanding financial instruments</span></a> that embody <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>obligations</span></a> for the <a href=\"/glossary/i/#issuer\" class=\"term\" title=\"The entity that issued a financial instrument or may be required under the terms of a financial instrument to issue its equity shares.\"><span>issuer</span></a>. </span></span></div></div>","snippet":"The objective of this Subtopic is to require issuers to classify as liabilities (or assets in some circumstances) three classes of freestanding financial instruments that embody obligations for the issuer.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb6d9651c6715f690de8c4cfed883904d949b10cd38c2bb6e7e0c26f3af35029","downloaded_from":"2026-09-10T00:35:32.317Z","last_downloaded_at":"2026-09-10T00:35:32.317Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481853","source_sha256":"9ea49e75e0230dff56a5e5f8b021280433c2c1c9a2d62ca20a05615bc1265151"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:85e651183d56a6f0aaa13bb800bd8043211b99e37023f0a8fa3abcb1236543e1","downloaded_from":"2026-09-10T00:35:32.317Z","last_downloaded_at":"2026-09-10T00:35:32.317Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481853","source_sha256":"9ea49e75e0230dff56a5e5f8b021280433c2c1c9a2d62ca20a05615bc1265151"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5e8da5998c34f329a6ef504eb3998bd193f136e8de91cdbf57566a2c3b0cebf","downloaded_from":"2026-09-10T00:35:32.317Z","last_downloaded_at":"2026-09-10T00:35:32.317Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481853","source_sha256":"9ea49e75e0230dff56a5e5f8b021280433c2c1c9a2d62ca20a05615bc1265151"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d5e8da5998c34f329a6ef504eb3998bd193f136e8de91cdbf57566a2c3b0cebf","downloaded_from":"2026-09-10T00:35:32.317Z","last_downloaded_at":"2026-09-10T00:35:32.317Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481853","source_sha256":"9ea49e75e0230dff56a5e5f8b021280433c2c1c9a2d62ca20a05615bc1265151"}}