{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/480/10/#15-scope-and-scope-exceptions","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":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"480-10-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Scope Section of the Overall Subtopic establishes the pervasive scope for the Distinguishing Liabilities from Equity Topic.</div> </div>","snippet":"The Scope Section of the Overall Subtopic establishes the pervasive scope for the Distinguishing Liabilities from Equity Topic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fa33c4cc3cccba4ac3ae1028170de639d6e97255f463695f122fdd829d605d7","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7f917084bd84711cbf5e9e87b18bf84a0b8ade29e3b78effd9dc58b05f4a65bd","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"block":null,"heading":"Entities","paragraphs":[{"citation":"480-10-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in the Distinguishing Liabilities from Equity Topic applies to all entities.</div> </div>","snippet":"The guidance in the Distinguishing Liabilities from Equity Topic applies to all entities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa567787d9aca417a8edbdc3d7f0faf5ac147cc67cb2f4382e6d42df177a123c","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dd7dca80f3e4f7759441b21be3c4c2eda3b40f954367457de62ec9ea59284d0f","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"block":null,"heading":"Instruments","paragraphs":[{"citation":"480-10-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26077-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Distinguishing Liabilities from Equity Topic applies to </span></span> <span class=\"sfragment\" id=\"sfr_64C261B2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">any <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 instrument</span></a>, including one that has any of the following attributes: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C262C3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Comprises more than one option or forward contract </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C263B2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Has characteristics of both a liability and equity and, in some circumstances, also has characteristics of an asset (for example, a forward contract to purchase the <a href=\"/glossary/i/#issuer-s-equity-shares\" class=\"term\" title=\"The equity shares of any entity whose financial statements are included in the consolidated financial statements.\"><span>issuer's equity shares</span></a> that is to be net cash settled). </span></span> <span class=\"sfragment\" id=\"sfr_64C264D6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Accordingly, this Topic does not address an instrument that has only characteristics of an asset. </span></span> </div> </li> </ol> </div> </div>","snippet":"The guidance in the Distinguishing Liabilities from Equity Topic applies to any freestanding financial instrument, including one that has any of the following attributes:\n(a) Comprises more than one option or forward con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e95df680c0fbf998bf5eaa8045257b3acfdbd3ea6efb3472387411fc15ed2496","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26607-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, an instrument that consists of a written put option for an issuer's equity shares and a purchased call option and nothing else is a freestanding financial instrument (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/480/10/#480-10-55-18\" class=\"xref\">480-10-55-18 through 55-20</a></div> provide examples of such instruments). </span></span> <span class=\"sfragment\" id=\"sfr_64C26770-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">That freestanding financial instrument embodies an <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> to repurchase the issuer's equity shares and is subject to the requirements of this Topic. </span></span> </div> </div>","snippet":"For example, an instrument that consists of a written put option for an issuer's equity shares and a purchased call option and nothing else is a freestanding financial instrument (paragraphs 480-10-55-18 through 55-20 pr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:283fb0d1e30d679eef096c546328ef51ab220221ec5ea62710c3d843f8ce9958","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-5","para":"15-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C2686E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Because paragraph <a href=\"/asc/480/10/#480-10-15-3\" class=\"xref\">480-10-15-3</a> limits the scope of this Topic to freestanding instruments, this Topic does not apply to a feature embedded in a <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> that is not a derivative instrument in its entirety. </span></span> </div> </div>","snippet":"Because paragraph 480-10-15-3 limits the scope of this Topic to freestanding instruments, this Topic does not apply to a feature embedded in a financial instrument that is not a derivative instrument in its entirety.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:398656f7c52e32498f115167cb766f056e1733ecb14c3fa779126772bb08883b","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-6","para":"15-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">Paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/480/10/#480-10-55-53\" class=\"xref\">480-10-55-53 through 55-58</a></div> apply to the specific circumstances described by those paragraphs in which a majority owner enters into a transaction in the <a href=\"/glossary/s/#shares\" class=\"term\" title=\"Shares includes various forms of ownership that may not take the legal form of securities (for example, partnership interests), as well as other interests, including those that are liabilities in substance but not in form. (Business entities have interest holders that are commonly known by specialized names, such as stockholders, partners, and proprietors, and by more general names, such as investors, but all are encompassed by the descriptive term owners. Equity of business entities is, thus, commonly known by several names, such as owners' equity, stockholders' equity, ownership, equity capital, partners' capital, and proprietorship. Some entities [for example, mutual organizations] do not have stockholders, partners, or proprietors in the usual sense of those terms but do have participants whose interests are essentially ownership interests, residual interests, or both.)\"><span>shares</span></a> of a consolidated subsidiary and a derivative instrument indexed to the <a href=\"/glossary/n/#noncontrolling-interest\" class=\"term\" title=\"The portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. A noncontrolling interest is sometimes called a minority interest.\"><span>noncontrolling interest</span></a> in that subsidiary.</div> </div>","snippet":"Paragraphs 480-10-55-53 through 55-58 apply to the specific circumstances described by those paragraphs in which a majority owner enters into a transaction in the shares of a consolidated subsidiary and a derivative inst…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f982f3c4240762b483fb556e62b924dedb51713e526d22e11dc20be6acf5e48","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7","para":"15-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <a href=\"/updates/asu-2017-11/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2017-11</a>.</div> </div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2017-11.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:405d2fa332ec1858e84878db3429e84134a772d4a8abb986b94535f54a87047f","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7A","para":"15-7A","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26987-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The classification, measurement, and disclosure guidance in this Subtopic does not apply to <a href=\"/glossary/m/#mandatorily-redeemable-financial-instrument\" class=\"term\" title=\"Any of various financial instruments issued in the form of shares that embody an unconditional obligation requiring the issuer to redeem the instrument by transferring its assets at a specified or determinable date (or dates) or upon an event that is certain to occur.\"><span>mandatorily redeemable financial instruments</span></a> that meet both of the following: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C26A82-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They are issued by nonpublic entities that are not <a href=\"/glossary/s/#securities-and-exchange-commission-registrant\" class=\"term\" title=\"An entity (or an entity that is controlled by an entity) that meets any of the following criteria: It has issued or will issue debt or equity securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.\"><span>Securities and Exchange Commission (SEC) registrants</span></a>. </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C26B74-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">They are mandatorily redeemable, but not on fixed dates or not for amounts that either are fixed or are determined by reference to an interest rate index, currency index, or another external index. </span></span> </div> </li> </ol> </div> </div>","snippet":"The classification, measurement, and disclosure guidance in this Subtopic does not apply to mandatorily redeemable financial instruments that meet both of the following:\n(a) They are issued by nonpublic entities that are…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cbef5f8716a306e4888c8104f2bb8b7428ff84c094f9aa4f29a8e3d9dec4e6a8","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7B","para":"15-7B","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26C6A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Mandatorily redeemable financial instruments issued by an SEC registrant are not eligible for the scope exception in paragraph <a href=\"/asc/480/10/#480-10-15-7A\" class=\"xref\">480-10-15-7A</a>, even if the entity meets the definition of a <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>. </span></span> </div> </div>","snippet":"Mandatorily redeemable financial instruments issued by an SEC registrant are not eligible for the scope exception in paragraph 480-10-15-7A, even if the entity meets the definition of a nonpublic entity.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f37ab61b9b0a99fee95eaf311c07d2738f772e7b4601ad1cce806155d9028d82","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7C","para":"15-7C","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26D5D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Some entities have issued shares that are required to be redeemed under related agreements. If the shares are issued with a redemption agreement and the required redemption relates to those specific underlying shares, the shares are mandatorily redeemable. If an entity with such shares and redemption agreement is a nonpublic entity that is not an SEC registrant, those mandatorily redeemable shares meet the scope exception in paragraph <a href=\"/asc/480/10/#480-10-15-7A\" class=\"xref\">480-10-15-7A</a> if they meet the conditions specified in that paragraph. </span></span> </div> </div>","snippet":"Some entities have issued shares that are required to be redeemed under related agreements. If the shares are issued with a redemption agreement and the required redemption relates to those specific underlying shares, th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8fa8d66a03f5c0cc0137abd88dd8e6426a5979d9fbea0ac8d81a842756bf352f","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7D","para":"15-7D","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26E4F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Although the disclosure requirements of this Subtopic do not apply for those mandatorily redeemable instruments of certain nonpublic companies that meet the scope exception in paragraph <a href=\"/asc/480/10/#480-10-15-7A\" class=\"xref\">480-10-15-7A</a>, the requirements of Subtopic <a altsource=\"GUID-0BDF1353-1407-4381-859E-CB0345029905.ditamap\" class=\"ditamap\">505-10</a> still apply. In particular, paragraph <a href=\"/asc/505/10/#505-10-50-3\" class=\"xref\">505-10-50-3</a> requires information about the pertinent rights and privileges of the various securities outstanding, which includes mandatory redemption requirements. Paragraph <a href=\"/asc/505/10/#505-10-50-11\" class=\"xref\">505-10-50-11</a> also requires disclosure of the amount of redemption requirements for all issues of stock that are redeemable at fixed or determinable prices on fixed or determinable dates in each of the next five years. </span></span> </div> </div>","snippet":"Although the disclosure requirements of this Subtopic do not apply for those mandatorily redeemable instruments of certain nonpublic companies that meet the scope exception in paragraph 480-10-15-7A, the requirements of …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f3df9540da6b68b5a73a09aa0797e41ae02767bd3afda35bfce91424febe83c","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7E","para":"15-7E","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C26F79-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in this Subtopic does not apply to mandatorily redeemable noncontrolling interests (of all entities, public and nonpublic) as follows:</span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C2705E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The classification and measurement provisions of this Subtopic do not apply to </span></span> <span class=\"sfragment\" id=\"sfr_64C2713E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">mandatorily redeemable noncontrolling interests that would not have to be classified as liabilities by the subsidiary, under the only upon liquidation exception in paragraphs <a href=\"/asc/480/10/#480-10-25-4\" class=\"xref\">480-10-25-4</a> and <a href=\"/asc/480/10/#480-10-25-6\" class=\"xref\">480-10-25-6</a>, but would be classified as liabilities by the parent in consolidated financial statements. </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C27221-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The measurement provisions of this Subtopic </span></span> <span class=\"sfragment\" id=\"sfr_64C272E4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">do not apply to other mandatorily redeemable noncontrolling interests that were issued before November 5, 2003, </span></span> <span class=\"sfragment\" id=\"sfr_64C273CA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">both for the parent in consolidated financial statements and for the subsidiary that issued the instruments that result in the mandatorily redeemable noncontrolling interest. For those instruments, the measurement guidance for redeemable shares and noncontrolling interests in other predecessor literature (for example, in paragraph <a href=\"/asc/480/10/#480-10-S99-3A\" class=\"xref\">480-10-S99-3A</a>) continues to apply. </span></span> </div> </li> </ol> </div> </div>","snippet":"The guidance in this Subtopic does not apply to mandatorily redeemable noncontrolling interests (of all entities, public and nonpublic) as follows:\n(a) The classification and measurement provisions of this Subtopic do no…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b959d361569195f6634a18ecdd49e96c424a7f779f03a59ec040369748099c8","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-7F","para":"15-7F","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C274AB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">All public entities as well as nonpublic entities that are SEC registrants </span></span> <span class=\"sfragment\" id=\"sfr_64C2757A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">with mandatorily redeemable noncontrolling interests subject to the classification and measurement scope exception in paragraph <a href=\"/asc/480/10/#480-10-15-7E\" class=\"xref\">480-10-15-7E</a></span></span> <span class=\"sfragment\" id=\"sfr_64C27678-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">are required to follow the disclosure requirements in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/480/10/#480-10-50-1\" class=\"xref\">480-10-50-1 through 50-3</a></div> as well as disclosures required by other applicable guidance. </span></span> </div> </div>","snippet":"All public entities as well as nonpublic entities that are SEC registrants with mandatorily redeemable noncontrolling interests subject to the classification and measurement scope exception in paragraph 480-10-15-7E are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:048aade06737b18f9d6929ddd5589cd902ac08d73d9f0655275cc19a117691b2","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c2a3718fa2fa8240e957abdbdf4ff40289a36cfd9cae80929da2f85b032e2c47","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"block":null,"heading":"Topics and Subtopics Not within Scope","paragraphs":[{"citation":"480-10-15-8","para":"15-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C277C5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Distinguishing Liabilities from Equity Topic does not apply to an obligation under share-based compensation arrangements if that obligation is accounted for under Topic <a altsource=\"GUID-37C8A489-7666-4EF7-AB4F-17B284EC8C1C.ditamap\" class=\"ditamap\">718</a>. </span></span> <span class=\"sfragment\" id=\"sfr_64C27918-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, <a href=\"/glossary/e/#employee-stock-ownership-plan\" class=\"term\" title=\"An employee stock ownership plan is an employee benefit plan that is described by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986 as a stock bonus plan, or combination stock bonus and money purchase pension plan, designed to invest primarily in employer stock. Also called an employee share ownership plan.\"><span>employee stock ownership plan</span></a> shares or freestanding agreements to repurchase those shares are not within the scope of this Topic because those shares are accounted for under Subtopic <a altsource=\"GUID-DA253E00-6584-4F8B-B0D4-A1EC58912753.ditamap\" class=\"ditamap\">718-40</a> through the point of redemption. </span></span> <span class=\"sfragment\" id=\"sfr_64C27A4B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, this Topic does apply to a freestanding financial instrument that was issued under a share-based compensation arrangement but is no longer subject to Topic <a altsource=\"GUID-37C8A489-7666-4EF7-AB4F-17B284EC8C1C.ditamap\" class=\"ditamap\">718</a>. </span></span> <span class=\"sfragment\" id=\"sfr_64C27B3B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, this Topic applies to a mandatorily redeemable share issued upon a grantee's exercise of a share option. </span></span> <span class=\"sfragment\" id=\"sfr_64C27C0A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">(Topic <a altsource=\"GUID-37C8A489-7666-4EF7-AB4F-17B284EC8C1C.ditamap\" class=\"ditamap\">718</a> provides accounting guidance for dividends on allocated shares, redemption of shares, recognition of expense, and computing earnings per share [EPS].) </span></span> <span class=\"sfragment\" id=\"sfr_64C27CDF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, employee stock ownership plan shares that are mandatorily redeemable or freestanding agreements to repurchase those shares continue to be subject to other applicable guidance related to Subtopic <a altsource=\"GUID-DA253E00-6584-4F8B-B0D4-A1EC58912753.ditamap\" class=\"ditamap\">718-40</a>. </span></span> </div> </div>","snippet":"The guidance in the Distinguishing Liabilities from Equity Topic does not apply to an obligation under share-based compensation arrangements if that obligation is accounted for under Topic 718. For example, employee stoc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83e2bf6959e56adc8dc8328c2cff99ce4d3b0b39078228a2d848352821e85613","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-8A","para":"15-8A","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C27DBD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in this Topic does not apply to the following instruments: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_64C27EDF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <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 arrangements</span></a> within the scope of Subtopic <a altsource=\"GUID-657D8285-2449-47DF-9AC2-4AFE6E02007A.ditamap\" class=\"ditamap\">825-20</a>. </span></span> </div> </li> </ol> </div> </div>","snippet":"The guidance in this Topic does not apply to the following instruments:\n(a) Registration payment arrangements within the scope of Subtopic 825-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5226b40058708ec51a7f3379ded2a21bfd782f24322ceeecc4fbcb5e80675f97","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-9","para":"15-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C28009-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Subtopic <a altsource=\"GUID-2B6707CB-355A-4E7A-8901-9529CE2DB325.ditamap\" class=\"ditamap\">805-30</a> provides guidance on the recognition and initial measurement of consideration issued in a business combination, including contingent consideration. </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <a href=\"/updates/page-1833002/\" class=\"xref\">Subparagraph not used</a>.</div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <a href=\"/updates/page-1833002/\" class=\"xref\">Subparagraph not used</a>.</div> </li> </ol> </div> </div>","snippet":"Subtopic 805-30 provides guidance on the recognition and initial measurement of consideration issued in a business combination, including contingent consideration.\n(a) Subparagraph not used.\n(b) Subparagraph not used.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d15e101c92443a0e263268cc5b0751dc777ccc308dafa36d9dccdd9e085809af","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},{"citation":"480-10-15-10","para":"15-10","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_64C280DA-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, when recognized, a financial instrument within the scope of this Topic that is issued as consideration (whether contingent or noncontingent) in a business combination shall be classified pursuant to the requirements of this Topic. </span></span> </div> </div>","snippet":"However, when recognized, a financial instrument within the scope of this Topic that is issued as consideration (whether contingent or noncontingent) in a business combination shall be classified pursuant to the requirem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b7a3a8f4ec6927b328dfa797043689c65e8ec34f894ce7f621d2c844bf9d6e1","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffb9c2d098023230d0b2dd8fcab1efaac50730f524db1b46faf88e12cd7e0c61","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d16cc4753536a083fd8293180c6af0207debbe3e6a890a77841a0ea1abdb2a5a","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d16cc4753536a083fd8293180c6af0207debbe3e6a890a77841a0ea1abdb2a5a","downloaded_from":"2026-09-10T00:35:35.740Z","last_downloaded_at":"2026-09-10T00:35:35.740Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481824","source_sha256":"9a46980f6572b674e414b3634ed01d01420733765681b62215c257f71121d38e"}}