{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/480/10/#55-implementation-guidance-and-illustrations","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":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"480-10-55-1","para":"55-1","html":"
This Section gives guidance on implementing this Subtopic and, for each class of instrument within this Subtopic's scope, provides examples showing classification as a liability (or asset in some circumstances) and, for certain financial instruments, initial and subsequent measurement guidance.
","snippet":"This Section gives guidance on implementing this Subtopic and, for each class of instrument within this Subtopic's scope, provides examples showing classification as a liability (or asset in some circumstances) and, for …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14d2d21339979148a1056357d1d5c30496e4e79ae6cdb5ed1d0a9f8e0e3a6332","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-2","para":"55-2","html":"
Paragraph 480-10-05-5 explains that how the monetary value of a financial instrument varies in response to changes in market conditions depends on the nature of the arrangement, including, in part, the form of settlement. For example, for a financial instrument that embodies an obligation that requires:
  1. a
    Settlement either by transfer of $100,000 in cash or by issuance of $100,000 worth of equity shares, the monetary value is fixed at $100,000, even if the share price changes.
  2. b
    Physical settlement by transfer of $100,000 in cash in exchange for the issuer's equity shares, the monetary value is fixed at $100,000, even if the fair value of the equity shares changes.
  3. c
    Net share settlement by issuance of a variable number of shares based on the change in the fair value of a fixed number of the issuer's equity shares, the monetary value varies based on the number of shares required to be issued to satisfy the obligation. For example, if the exercise price of a net-share-settled written put option entitling the holder to put back 10,000 of the issuer's equity shares is $11, and the fair value of the issuing entity's equity shares on the exercise date decreases from $13 to $10, that change in fair value of the issuer's shares increases the monetary value of that obligation at settlement from $0 to $10,000 ($110,000 minus $100,000), and the option would be settled by issuance of 1,000 shares ($10,000 divided by $10).
  4. d
    Net cash settlement based on the change in the fair value of a fixed number of the issuer's equity shares, the monetary value varies in the same manner as in (c) for net share settlement, but the obligation is settled with cash. In a net-cash-settled variation of the previous example, the option would be settled by delivery of $10,000.
  5. e
    Settlement by issuance of a variable number of shares that is based on variations in something other than the issuer's equity shares, the monetary value varies based on changes in the price of another variable. For example, a net-share-settled obligation to deliver the number of shares equal in value at settlement to the change in fair value of 100 ounces of gold has a monetary value that varies based on the price of gold and not on the price of the issuer's equity shares.
","snippet":"Paragraph 480-10-05-5 explains that how the monetary value of a financial instrument varies in response to changes in market conditions depends on the nature of the arrangement, including, in part, the form of settlement…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:364a429f7fff994b041c5a531f6c530e82eb38cbfd46a605322bbd400c9accfc","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-3","para":"55-3","html":"
Various financial instruments issued in the form of shares embody unconditional obligations of the issuer to redeem the instruments by transferring its assets at a specified or determinable date or dates or upon an event that is certain to occur.
","snippet":"Various financial instruments issued in the form of shares embody unconditional obligations of the issuer to redeem the instruments by transferring its assets at a specified or determinable date or dates or upon an event…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0d4509af5ead38bcd79020e49cd227be802433657e1c38a781b4c483766db283","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-4","para":"55-4","html":"
This Section presents two examples of mandatorily redeemable financial instruments:
  1. a
    Certain forms of trust-preferred securities (those that are required to be redeemed at specified or determinable dates)
  2. b
    Stock that must be redeemed upon the death or termination of the individual who holds it, which is an event that is certain to occur.
","snippet":"This Section presents two examples of mandatorily redeemable financial instruments:\n(a) Certain forms of trust-preferred securities (those that are required to be redeemed at specified or determinable dates)\n(b) Stock th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef6ef3d3119a574fc5d110744aef84e668ef5ec8193b7c9d796cb9660dafb4fe","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-5","para":"55-5","html":"
Although some mandatorily redeemable instruments are issued in the form of shares, those instruments are classified as liabilities under this Subtopic because of the embodied obligation on the part of the issuer to transfer its assets.
","snippet":"Although some mandatorily redeemable instruments are issued in the form of shares, those instruments are classified as liabilities under this Subtopic because of the embodied obligation on the part of the issuer to trans…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31e400bba31160305e97165df477ca2404019e83ed505f02edcfea5586426f42","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-6","para":"55-6","html":"
Paragraph superseded by Accounting Standards Update No. 2017-11.
","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":"sha256:61e30626db65d7c6580cb0e20765972d280d2bd8c2c136420116c9ea0d3dc292","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-7","para":"55-7","html":"
Paragraph superseded by Accounting Standards Update No. 2017-11.
","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:b50adfdee8e6210d224b3841a58e09ae63a30a2e4fcdc28a2dd0860f2858c292","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-8","para":"55-8","html":"
Paragraph superseded by Accounting Standards Update No. 2017-11.
","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":"sha256:29cd25d17ebcc18e4f2176f243891ddf6bfb56d42168b65667c2d0bc3d233afa","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-9","para":"55-9","html":"
Paragraph superseded by Accounting Standards Update No. 2017-11.
","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:de06adfdff9610c7cceaf15d5cd490dfd4565b3a2cfb9d60d8514733e1d1052a","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-10","para":"55-10","html":"
The guidance that follows discusses the requirement in paragraph 480-10-25-7 for reclassification of stock that becomes mandatorily redeemable. For example, an entity may issue equity shares on January 2, 2004, that must be redeemed (not at the option of the holder) six months after a change in control. When issued, the shares are conditionally redeemable and, therefore, do not meet the definition of mandatorily redeemable. On December 30, 2008, there is a change in control, requiring the shares to be redeemed on June 30, 2009. On December 31, 2008, the issuer would treat the shares as mandatorily redeemable and reclassify the shares as liabilities, measured initially at fair value. Additionally, the issuer would reduce equity by the amount of that initial measure, recognizing no gain or loss.
","snippet":"The guidance that follows discusses the requirement in paragraph 480-10-25-7 for reclassification of stock that becomes mandatorily redeemable. For example, an entity may issue equity shares on January 2, 2004, that must…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec9ccb535612bf78461e3450239830bd87a570bfbcd7755b114e94fb0e5c2e2c","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-11","para":"55-11","html":"
For another example of a conditionally redeemable instrument, an entity may issue preferred shares with a stated redemption date 30 years hence that also are convertible at the option of the holders into a fixed number of common shares during the first 10 years. Those instruments are not mandatorily redeemable for the first 10 years because the redemption is conditional, contingent upon the holder's not exercising its option to convert into common shares. However, when the conversion option (the condition) expires, the shares would become mandatorily redeemable and would be reclassified as liabilities, measured initially at fair value.
","snippet":"For another example of a conditionally redeemable instrument, an entity may issue preferred shares with a stated redemption date 30 years hence that also are convertible at the option of the holders into a fixed number o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:73c1b5053ff8eb7037a195fc38fe4ae9a7d18b38af8d72193657412254dbdd43","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-12","para":"55-12","html":"
If the conversion option were nonsubstantive, for example, because the conversion price is extremely high in relation to the current share price, it would be disregarded as provided in paragraph 480-10-25-1. If that were the case at inception, those preferred shares would be considered mandatorily redeemable and classified as liabilities with no subsequent reassessment of the nonsubstantive feature.
","snippet":"If the conversion option were nonsubstantive, for example, because the conversion price is extremely high in relation to the current share price, it would be disregarded as provided in paragraph 480-10-25-1. If that were…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cd3d4ff41a8f5080af5ddfb7ca00367dfb2459549c7fc1029b560a11f51fe83","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-13","para":"55-13","html":"
The following discussion focuses on the application of paragraphs
480-10-25-8 through 25-12
to obligations to repurchase an issuer's equity shares that require a transfer of assets.
","snippet":"The following discussion focuses on the application of paragraphs 480-10-25-8 through 25-12 to obligations to repurchase an issuer's equity shares that require a transfer of assets.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13e02d887e6d5cf903027eb4a497fc86d2ce0cbce35455fea1253352b98b32d8","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-14","para":"55-14","html":"
For example, an entity may enter into a forward contract to repurchase 1 million shares of its common stock from another party 2 years later. At inception, the forward contract price per share is $30, and the current price of the underlying shares is $25. The contract's terms require that the entity pay cash to repurchase the shares (the entity is obligated to transfer $30 million in 2 years). Because the instrument embodies an unconditional obligation to transfer assets, it is a liability under paragraphs
480-10-25-8 through 25-12
. The entity would recognize a liability and reduce equity by $25 million (which is the present value, at the 9.54 percent rate implicit in the contract, of the $30 million contract amount, and also, in this example, the fair value of the underlying shares at inception). Interest would be accrued over the 2-year period to the forward contract amount of $30 million, using the 9.54 percent rate implicit in the contract. If the underlying shares are expected to pay dividends before the repurchase date and that fact is reflected in the rate implicit in the contract, the present value of the liability and subsequent accrual to the contract amount would reflect that implicit rate. Amounts accrued are recognized as interest cost.
","snippet":"For example, an entity may enter into a forward contract to repurchase 1 million shares of its common stock from another party 2 years later. At inception, the forward contract price per share is $30, and the current pri…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00b7be279449d503145f94f89b1e24a7fc49294e54c1b7066d0376a76c312cb3","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-15","para":"55-15","html":"
In this example, no consideration or other rights or privileges changed hands at inception. If the same contract price of $30 per share had been agreed to even though the current price of the issuer's shares was $30, because the issuer had simultaneously sold the counterparty a product at a $5 million discount, that right or privilege unstated in the forward purchase contract would be taken into consideration in arriving at the appropriate implied discount rate—9.54 percent rather than 0 percent—for that contract. That entity would recognize a liability for $25 million, reduce equity by $30 million, and increase its revenue for the sale of the product by $5 million. Alternatively, if the same contract price of $30 per share had been agreed to even though the current price of the issuer's shares was only $20, because the issuer received a $5 million payment at inception of the contract, the issuer would recognize a liability for $25 million and reduce equity by $20 million. In both examples, interest would be accrued over the 2-year period using the 9.54 percent implicit rate, increasing the liability to the $30 million contract price.
","snippet":"In this example, no consideration or other rights or privileges changed hands at inception. If the same contract price of $30 per share had been agreed to even though the current price of the issuer's shares was $30, bec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1fb2d5506e66f6b9fb989b44361ac8d0796e6e182d5e847dc211050b8fd98a17","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-16","para":"55-16","html":"
If a variable-rate forward contract requires physical settlement, a different measurement method is required subsequently, as set forth in paragraph 480-10-35-3.
","snippet":"If a variable-rate forward contract requires physical settlement, a different measurement method is required subsequently, as set forth in paragraph 480-10-35-3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b8057aeab4deaa79e80593656ea103a91e2b7ff4099cbf981e630240ceada3c","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-17","para":"55-17","html":"
In contrast to forward purchase contracts that require physical settlement in exchange for cash, forward purchase contracts that require or permit net cash settlement, require or permit net share settlement, or require physical settlement in exchange for specified quantities of assets other than cash are measured initially and subsequently at fair value, as provided in paragraphs 480-10-30-2, 480-10-30-7, 480-10-35-1, and 480-10-35-5 (as applicable), and classified as assets or liabilities depending on the fair value of the contracts on the reporting date.
","snippet":"In contrast to forward purchase contracts that require physical settlement in exchange for cash, forward purchase contracts that require or permit net cash settlement, require or permit net share settlement, or require p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:115d2d47128865b885b944775b8fe4ef6b2fa7bc71d56ded1eead036643764c6","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-18","para":"55-18","html":"
If a freestanding financial instrument consists solely of a written put option to repurchase the issuer's equity shares and another option, that freestanding financial instrument in its entirety is subjected to paragraphs
480-10-25-4 through 25-14
to determine if it meets the requirements to be classified as a liability.
","snippet":"If a freestanding financial instrument consists solely of a written put option to repurchase the issuer's equity shares and another option, that freestanding financial instrument in its entirety is subjected to paragraph…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:791362b10d0fe8b98a28df073f53187a26a9c0fb8013d61d3dd79f7974f15736","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-19","para":"55-19","html":"
For example, an entity may enter into a contract that requires it to purchase 100 shares of its own stock on a specified date for $20 if the stock price falls below $20 and entitles the entity to purchase 100 shares on that date for $21 if the stock price is greater than $21. That contract shall be analyzed as the combination of a written put option and a purchased call option and not as a forward contract. The written put option on 100 shares has a strike price of $20, and the purchased call option on 100 shares has a strike price of $21. If at issuance the fair value of the written put option exceeds the fair value of the purchased call option, the issuer receives cash and the contract is a net written option—a liability. If required to be physically settled, that contract is a liability under the provisions in paragraphs
480-10-25-8 through 25-12
because it embodies an obligation that may require repurchase of the issuer's equity shares and settlement by a transfer of assets. If the issuer must or can net cash settle the contract, the contract is a liability under the provisions of those paragraphs because it embodies an obligation that is indexed to an obligation to repurchase the issuer's equity shares and may require settlement by a transfer of assets. If the issuer must or can net share settle the contract, that contract is a liability under the provisions in paragraph 480-10-25-14(c), because the monetary value of the obligation varies inversely in relation to changes in the fair value of the issuer's equity shares.
","snippet":"For example, an entity may enter into a contract that requires it to purchase 100 shares of its own stock on a specified date for $20 if the stock price falls below $20 and entitles the entity to purchase 100 shares on t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:563f4b5a038db88e8d6919b057f3dd4bc8739ca575651a38fbd42a816810beec","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-20","para":"55-20","html":"
If, in this example, the fair value of the purchased call option at issuance exceeds the fair value of the written put option, the issuer pays out cash and the contract is a net purchased option, to be initially classified as an asset under either paragraphs
480-10-25-8 through 25-12
or 480-10-25-14(c). If the fair values of the two options are equal and opposite at issuance, the financial instrument has an initial fair value of zero, and is commonly called a zero-cost collar. Thereafter, if the fair value of the instrument changes, the instrument is classified as an asset or a liability and measured subsequently at fair value.
","snippet":"If, in this example, the fair value of the purchased call option at issuance exceeds the fair value of the written put option, the issuer pays out cash and the contract is a net purchased option, to be initially classifi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08fd4158545b861ad2fc87e8009bdf0f77ec7e48d56bc24490c4cdfa2274c86d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-21","para":"55-21","html":"
The following examples illustrate the application of this Subtopic to certain share-settled obligations.
","snippet":"The following examples illustrate the application of this Subtopic to certain share-settled obligations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a49433aae7de346c719267b82097a50c789bf97f21fa83fa3a337c6f97704668","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-22","para":"55-22","html":"
Certain financial instruments embody obligations that require (or permit at the issuer's discretion) settlement by issuance of a variable number of the issuer's equity shares that have a value equal to a fixed monetary amount. For example, an entity may receive $100,000 in exchange for a promise to issue a sufficient number of its own shares to be worth $110,000 at a future date. The number of shares required to be issued to settle that unconditional obligation is variable, because that number will be determined by the fair value of the issuer's equity shares on the date of settlement. Regardless of the fair value of the shares on the date of settlement, the holder will receive a fixed monetary value of $110,000. Therefore, the instrument is classified as a liability under paragraph 480-10-25-14(a). Some share-settled obligations of this kind require that the variable number of shares to be issued be based on an average market price for the shares over a stated period of time, such as the average over the last 30 days before settlement, instead of the fair value of the issuer's equity shares on the date of settlement. Thus, if the average market price differs from the share price on the date of settlement, the monetary value of the obligation is not entirely fixed at inception and is based, in small part, on variations in the fair value of the issuer's equity shares. Although the monetary amount of the obligation at settlement may differ from the initial monetary value because it is tied to the change in fair value of the issuer's equity shares over the last 30 days before settlement, the monetary value of the obligation is predominantly based on a fixed monetary amount known at inception. The obligation is classified as a liability under paragraph 480-10-25-14(a). Upon issuance of the shares to settle the obligation, equity is increased by the amount of the liability and no gain or loss is recognized for the difference between the average and the ending market price.
","snippet":"Certain financial instruments embody obligations that require (or permit at the issuer's discretion) settlement by issuance of a variable number of the issuer's equity shares that have a value equal to a fixed monetary a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76e876016d99bec6a550e6624e1a50c3e610bf19a0f5aa7cd3a1e88aac891c4d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-23","para":"55-23","html":"
An entity's guarantee of the value of an asset, liability, or equity security of another entity may require or permit settlement in the entity's equity shares. For example, an entity may guarantee that the value of a counterparty's equity investment in another entity will not fall below a specified level. The guarantee contract requires that the guarantor stand ready to issue a variable number of its shares whose fair value equals the deficiency, if any, on a specified date between the guaranteed value of the investment and its current fair value. Upon issuance, unless the guarantee is accounted for as a derivative instrument, the obligation to stand ready to perform is a liability addressed by Topic 460. If, during the period the contract is outstanding, the fair value of the guaranteed investment falls below the specified level, absent an increase in value, the guarantor will be required to issue its equity shares. At that point in time, the liability recognized in accordance with that Topic would be subject to the requirements of Topic 450. This Subtopic establishes that, even though the loss contingency is settleable in equity shares, the obligation under that Topic is a liability under paragraph 480-10-25-14(b) until the guarantor settles the obligation by issuing its shares. That is because the guarantor's conditional obligation to issue shares is based on the value of the counterparty's equity investment in another entity and not on changes in the fair value of the guarantor's equity instruments.
","snippet":"An entity's guarantee of the value of an asset, liability, or equity security of another entity may require or permit settlement in the entity's equity shares. For example, an entity may guarantee that the value of a cou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e9cef8b3842592e4ed8d65a2f7323d2c9156d7319f341998cf66440a6ef385ca","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-24","para":"55-24","html":"
If this example were altered so that the monetary value of the obligation is based on the deficiency on a specified date between the guaranteed value of the investment in another entity and its current fair value plus .005 times the change in value of 100 of the guarantor's equity shares, the monetary value of the obligation would not be solely based on variations in something other than the fair value of the issuer's (guarantor's) equity shares.
","snippet":"If this example were altered so that the monetary value of the obligation is based on the deficiency on a specified date between the guaranteed value of the investment in another entity and its current fair value plus .0…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b040f5fe2df25fa37d6ab16960efbbd9e1b202db19eba3ff5f0f7f7bafda2880","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-25","para":"55-25","html":"
However, the monetary value of the obligation would be predominantly based on variations in something other than the fair value of the issuer's (guarantor's) equity shares and, therefore, the obligation would be classified as a liability under paragraph 480-10-25-14(b). That obligation differs in degree from the obligation under a contract that is indexed in part to the issuer's shares and in part (but not predominantly) to something other than the issuer's shares (commonly called a dual-indexed obligation). The latter contract is not within the scope of this Subtopic. That paragraph applies only if the monetary value of an obligation to issue equity shares is based solely or predominantly on variations in something other than the fair value of the issuer's equity shares. For example, an instrument meeting the definition of a derivative instrument that requires delivery of a variable number of the issuer's equity shares with a monetary value equaling changes in the price of a fixed number of the issuer's shares multiplied by the Euro/U.S. dollar exchange rate embodies an obligation with a monetary value that is based on variations in both the issuer's share price and the foreign exchange rate and, therefore, is not within the scope of this Subtopic. (However, that instrument would be a derivative instrument under Topic 815. Paragraphs 815-10-15-74(a) and 815-10-15-75(b) address derivative instruments that are dual indexed and require an issuer to report those instruments as derivative instrument liabilities or assets.)
","snippet":"However, the monetary value of the obligation would be predominantly based on variations in something other than the fair value of the issuer's (guarantor's) equity shares and, therefore, the obligation would be classifi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6b7a257044d2518a76e2bfe56dd5fd2bddb285660287fe43cb12809926c095d8","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-26","para":"55-26","html":"
A freestanding forward purchase contract, a freestanding written put option, or a net written option (otherwise similar to the example in paragraphs
480-10-55-18 through 55-19
) that must or may be net share settled is a liability under paragraph 480-10-25-14(c), because the monetary value of the obligation to deliver a variable number of shares embodied in the contract varies inversely in relation to changes in the fair value of the issuer's equity shares; when the issuer's share price decreases, the issuer's obligation under those contracts increases. Such a contract is measured initially and subsequently at fair value (with changes in fair value recognized in earnings) and classified as a liability or an asset, depending on the fair value of the contract on the reporting date. A net written or net purchased option or a zero-cost collar similar to the examples in paragraphs
480-10-55-18 through 55-20
that must or may be net share settled is classified as a liability (or asset) under paragraph 480-10-25-14(c), because the monetary value of the issuer's obligation to deliver a variable number of shares under the written put option varies inversely in relation to changes in the fair value of the issuer's share price. The purchased call option element of that freestanding instrument does not embody an obligation to deliver a variable number of shares and does not affect the classification of the entire instrument when applying that paragraph. In addition, a freestanding purchased call option is not within the scope of this Subtopic because it does not embody an obligation.
","snippet":"A freestanding forward purchase contract, a freestanding written put option, or a net written option (otherwise similar to the example in paragraphs 480-10-55-18 through 55-19) that must or may be net share settled is a …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58b5092247d74d7063416ad03f1e5129ef593614f409b0621b8ce382cdfd0948","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-27","para":"55-27","html":"
Some instruments do not require the issuer to transfer assets to settle the obligation but, instead, unconditionally require the issuer to settle the obligation either by transferring assets or by issuing a variable number of its equity shares. Because those instruments do not require the issuer to settle by transfer of assets, those instruments are not within the scope of paragraphs
480-10-25-4 through 25-6
. However, those instruments may be classified as liabilities under paragraph 480-10-25-14.
","snippet":"Some instruments do not require the issuer to transfer assets to settle the obligation but, instead, unconditionally require the issuer to settle the obligation either by transferring assets or by issuing a variable numb…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30bca8be85ae6f8e65114abf681de5cddd2de42b33fa0426b64ccaf2bbbce172","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-28","para":"55-28","html":"
For example, an entity may issue 1 million shares of cumulative preferred stock for cash equal to the stock's liquidation preference of $25 per share. The entity is required either to redeem the shares on the fifth anniversary of issuance for the issuance price plus any accrued but unpaid dividends in cash or to settle by issuing sufficient shares of its common stock to be worth $25 per share. Preferred stockholders are entitled to a mandatory dividend, payable quarterly at a rate of 6 percent per annum based on the $25 per share liquidation preference ($1.50 per share annually). The dividend is cumulative and is payable in cash or in a sufficient number of additional shares of the preferred stock based on the liquidation preference of $25 per share. That obligation does not represent an unconditional obligation to transfer assets and, therefore, is not a mandatorily redeemable financial instrument subject to paragraph 480-10-25-4. But it is still a liability, under paragraph 480-10-25-14(a), because the preferred shares embody an unconditional obligation that the issuer may settle by issuing a variable number of its equity shares with a monetary value that is fixed and known at inception. Because the preferred shares are liabilities, payments to holders are reported as interest cost, and accrued but not-yet-paid payments are part of the liability for the shares.
","snippet":"For example, an entity may issue 1 million shares of cumulative preferred stock for cash equal to the stock's liquidation preference of $25 per share. The entity is required either to redeem the shares on the fifth anniv…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:94359fc1c99cd6a51e8c3f1abdf3aad33b59fb83be8ec4b76b7889252fc303ae","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-29","para":"55-29","html":"
The implementation guidance that follows addresses financial instruments involving multiple components that embody (or are indexed to) an obligation to repurchase the issuer's shares and that may require settlement by transferring assets. Some freestanding financial instruments composed of more than one option or forward contract embodying obligations require or may require settlement by transfer of assets. Paragraphs
480-10-15-3 through 15-4
state that the provisions of this Subtopic apply to freestanding financial instruments, including those that comprise more than one option or forward contract, and paragraphs
480-10-25-4 through 25-14
shall be applied to a freestanding financial instrument in its entirety. Under paragraphs
480-10-25-8 through 25-12
, if a freestanding instrument is composed of a written call option and a written put option, the existence of the written call option does not affect the classification. Unlike the application of paragraph 480-10-25-14, applying paragraphs
480-10-25-8 through 25-12
does not involve making any judgments about predominance among obligations or contingencies.
","snippet":"The implementation guidance that follows addresses financial instruments involving multiple components that embody (or are indexed to) an obligation to repurchase the issuer's shares and that may require settlement by tr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c107339dd1c72a7b877573493e0e2583ea4ec21233daf4b3496e62b94b1203b","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-30","para":"55-30","html":"
Consider, for example, a puttable warrant that allows the holder to purchase a fixed number of the issuer's shares at a fixed price that also is puttable by the holder at a specified date for a fixed monetary amount that the holder could require the issuer to pay in cash. The warrant is not an outstanding share and therefore does not meet the exception for outstanding shares in paragraphs
480-10-25-8 through 25-12
. As a result, the example puttable warrant is a liability under those paragraphs, because it embodies an obligation indexed to an obligation to repurchase the issuer's shares and may require a transfer of assets. It is a liability even if the repurchase feature is conditional on a defined contingency in addition to the level of the issuer's share price.
","snippet":"Consider, for example, a puttable warrant that allows the holder to purchase a fixed number of the issuer's shares at a fixed price that also is puttable by the holder at a specified date for a fixed monetary amount that…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fc19c325f8c9bd4b62c15b6e26cfddff6fecfb68d1620d04deddb1f41b7107a9","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-31","para":"55-31","html":"
Entity A issues a puttable warrant to Holder. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. The put feature allows Holder instead to put the warrant back to Entity A on that date for $2, and to require settlement in cash. If the share price on the settlement date is greater than $12, Holder would be expected to exercise the warrant, obligating Entity A to issue a fixed number of shares in exchange for a fixed amount of cash. That feature does not result in a liability under paragraphs
480-10-25-8 through 25-12
. However, if the share price is equal to or less than $12, Holder would be expected to put the warrant back to Entity A and could choose to obligate Entity A to pay $2 in cash. That feature does result in a liability, because the financial instrument embodies an obligation that is indexed to an obligation to repurchase the issuer's shares (as the share price decreases toward $12, the fair value of the issuer's obligation to stand ready to pay $2 begins to increase) and may require a transfer of assets. Therefore, paragraphs
480-10-25-8 through 25-12
require Entity A to classify the instrument as a liability.
","snippet":"Entity A issues a puttable warrant to Holder. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. The put feature allows Holder instead to put the warrant back to En…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55206b66ce84ca38c9866427d2a8f9216ad188f33858534c5583180f9287ccea","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-32","para":"55-32","html":"
Entity B issues a warrant for shares that can be put back by Holder immediately after exercise of the warrant. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. The put feature allows Holder to put the shares obtained by exercising the warrant back to Entity B on that date for $12, and to require physical settlement in cash. If the share price on the settlement date is greater than $12, Holder would be expected to exercise the warrant obligating Entity B to issue a fixed number of shares in exchange for a fixed amount of cash, and retain the shares. That feature alone does not result in a liability under paragraphs
480-10-25-8 through 25-12
. However, if the share price is equal to or less than $12, Holder would be expected to put the shares back to Entity B and could choose to obligate Entity B to pay $12 in cash. That feature does result in a liability, because the financial instrument embodies an obligation to repurchase the issuer's shares and may require a transfer of assets. Therefore, those paragraphs require Entity B to classify the warrant as a liability. A warrant to issue shares that will be mandatorily redeemable is also classified as a liability, and should be analyzed under Topic 815.
","snippet":"Entity B issues a warrant for shares that can be put back by Holder immediately after exercise of the warrant. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. Th…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af33e76677ecf8b052c32f554df73ad7dbbc78c59d87824c09a775235cdf77f7","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-33","para":"55-33","html":"
A warrant for puttable shares conditionally obligates the issuer to ultimately transfer assets—the obligation is conditioned on the warrant's being exercised and the shares obtained by the warrant being put back to the issuer for cash or other assets. Similarly, a warrant for mandatorily redeemable shares also conditionally obligates the issuer to ultimately transfer assets—the obligation is conditioned only on the warrant's being exercised because the shares will be redeemed. Thus, warrants for both puttable and mandatorily redeemable shares are analyzed the same way and are liabilities under paragraphs
480-10-25-8 through 25-12
, even though the number of conditions leading up to the possible transfer of assets differs for those warrants. The warrants are liabilities even if the share repurchase feature is conditional on a defined contingency.
","snippet":"A warrant for puttable shares conditionally obligates the issuer to ultimately transfer assets—the obligation is conditioned on the warrant's being exercised and the shares obtained by the warrant being put back to the i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:179c3db6d6ca682e0d6d6747c3df98b45d61b348c5bb18dbee2b05a5645fc8b4","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-34","para":"55-34","html":"
An issuer has the following three freestanding instruments with the same counterparty, entered into contemporaneously:
  1. a
    A written put option on its equity shares
  2. b
    A purchased call option on its equity shares
  3. c
    Outstanding shares of stock.
","snippet":"An issuer has the following three freestanding instruments with the same counterparty, entered into contemporaneously:\n(a) A written put option on its equity shares\n(b) A purchased call option on its equity shares\n(c) Ou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f1841ab8e1a59f9b9e13cb2a1be548adfb4810574c5b9e6d7058c949a343de89","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-35","para":"55-35","html":"
Under this Subtopic those three contracts would be separately evaluated. The written put option is reported as a liability under either paragraphs
480-10-25-8 through 25-12
or 480-10-25-14(c) (depending on the form of settlement) and is measured at fair value. The purchased call option does not embody an obligation and, therefore, is not within the scope of this Subtopic. The outstanding shares of stock also are not within the scope of this Subtopic, because the shares do not embody an obligation for the issuer. Under paragraph 480-10-25-15, neither the purchased call option nor the shares of stock are to be combined with the written put option in applying paragraphs
480-10-25-4 through 25-14
unless otherwise required by Topic 815. If that Topic required the freestanding written put option and purchased call option to be combined and viewed as a unit, the unit would be accounted for as a combination of options, following the guidance in paragraphs
480-10-55-18 through 55-20
.
","snippet":"Under this Subtopic those three contracts would be separately evaluated. The written put option is reported as a liability under either paragraphs 480-10-25-8 through 25-12 or 480-10-25-14(c) (depending on the form of se…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c51ba54061f15ccab5617a098e242e75e342c836dbbea874ef62600e34c768b4","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-36","para":"55-36","html":"
An issuer has the following two freestanding instruments with the same counterparty entered into contemporaneously:
  1. a
    A contract that combines a written put option at one strike price and a purchased call option at another strike price on its equity shares
  2. b
    Outstanding shares of stock.
","snippet":"An issuer has the following two freestanding instruments with the same counterparty entered into contemporaneously:\n(a) A contract that combines a written put option at one strike price and a purchased call option at ano…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:22a584132d9d6b00485b45b9f3eacc6b72bb7c23dd23a4070a15c8ef938f9139","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-37","para":"55-37","html":"
As required by paragraph 480-10-25-1, paragraphs
480-10-25-4 through 25-14
are applied to the entire freestanding instrument that comprises both a put option and a call option. Because the put option element of the contract embodies an obligation to repurchase the issuer's equity shares, the freestanding instrument that comprises a put option and a call option is reported as a liability (or asset) under either paragraphs
480-10-25-8 through 25-12
or 480-10-25-14(c) (depending on the form of settlement) and is measured at fair value. Under paragraphs
480-10-15-3 through 15-4
and 480-10-25-1, that freestanding financial instrument is within the scope of this Subtopic regardless of whether at current prices it is a net written, net purchased, or zero-cost collar option and regardless of the form of settlement. The outstanding shares of stock are not within the scope of this Subtopic and, under paragraph 480-10-25-15, are not combined with the freestanding written put and purchased call option. (Some outstanding shares of stock are within the scope of this Subtopic, for example, mandatorily redeemable shares or shares subject to a physically settled forward purchase contract in exchange for cash.)
","snippet":"As required by paragraph 480-10-25-1, paragraphs 480-10-25-4 through 25-14 are applied to the entire freestanding instrument that comprises both a put option and a call option. Because the put option element of the contr…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:050a3b630f1f2ec7823a86fc3fe1e0f189ab43e66a978f2d280b0d4a36015e34","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-38","para":"55-38","html":"
An entity issues a share of stock that is not mandatorily redeemable. However, under its terms the stock is both of the following:
  1. a
    Puttable by the holder any time after five years or upon a change in control
  2. b
    Callable by the issuer any time after five years.
","snippet":"An entity issues a share of stock that is not mandatorily redeemable. However, under its terms the stock is both of the following:\n(a) Puttable by the holder any time after five years or upon a change in control\n(b) Call…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ea242b33de006879296f9f9b8609865ddef2b1dba0dee2a3280ef54ae6e42a8","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-39","para":"55-39","html":"
That instrument is outside the scope of this Subtopic. The instrument as a whole is not mandatorily redeemable under paragraphs 480-10-25-4 and 480-10-25-6 because of both of the following conditions:
  1. a
    The redemption is optional (conditional).
  2. b
    A written put option and a purchased call option issued together with the same terms differ from a forward purchase contract under this Subtopic.
","snippet":"That instrument is outside the scope of this Subtopic. The instrument as a whole is not mandatorily redeemable under paragraphs 480-10-25-4 and 480-10-25-6 because of both of the following conditions:\n(a) The redemption …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:353c3846a5e891127d529256eabb98ef8ee894de53ee6071db099410a1b1c72d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-40","para":"55-40","html":"
That combination of embedded features does not render the stock mandatorily redeemable because the options could expire at the money, unexercised, and, thus, the redemption is not unconditional. Because the instrument as a whole is an outstanding share, it is not subject to paragraphs
480-10-25-8 through 25-12
, nor, because the embedded obligation is conditional, is it subject to paragraph 480-10-25-14. As a financial instrument that is not a derivative instrument in its entirety, it is subject to analysis under Subtopic 815-15 to determine whether the issuer must account for any embedded feature separately as a derivative instrument. Because of the guidance in paragraph 480-10-25-2, paragraphs
480-10-25-4 through 25-14
shall not be applied to any embedded feature for the purposes of that analysis. In applying paragraph 815-15-25-1, the embedded written put option is evaluated under the guidance in Subtopic 815-40 and would generally be classified in equity. If so, the embedded written put option meets the criterion for exclusion in paragraph 815-10-15-74(a) and, therefore, is not separated from its host contract. If the written put option was not embedded in the share, but was issued as a freestanding instrument, it would be a liability under this Subtopic.
","snippet":"That combination of embedded features does not render the stock mandatorily redeemable because the options could expire at the money, unexercised, and, thus, the redemption is not unconditional. Because the instrument as…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:32e8266a6965e1c0b4bfc635aae64802c1abbe6bc6fd14f234c70a9e0718c453","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-41","para":"55-41","html":"
An entity issues one share of preferred stock (with a par amount of $100), paying a small dividend, and embeds in it an option allowing the holder to put the preferred share along with 100,000 shares of the issuer's common stock (currently trading at $50) for a fixed price of $45 per share in cash. The preferred stock host is judged at inception to be minimal and would be disregarded under paragraph 480-10-25-1 in applying the classification provisions of this Subtopic. Therefore, under either paragraphs
480-10-25-8 through 25-12
or 480-10-25-14(c) (depending on the form of settlement), that instrument would be analyzed as a written put option in its entirety, classified as a liability, and measured at fair value.
","snippet":"An entity issues one share of preferred stock (with a par amount of $100), paying a small dividend, and embeds in it an option allowing the holder to put the preferred share along with 100,000 shares of the issuer's comm…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e23591ad2524fe0c5d4a6a23cfecab8e059e793541e3875a8c2993c01920997","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-42","para":"55-42","html":"
A financial instrument composed of more than one option or forward contract embodying obligations to issue shares must be analyzed to determine whether the obligations under any of its components have one of the characteristics in paragraph 480-10-25-14, and if so, whether those obligations are predominant relative to other obligations. For example, a puttable warrant that allows the holder to purchase a fixed number of the issuer's shares at a fixed price that also is puttable by the holder at a specified date for a fixed monetary amount to be paid, at the issuer's discretion, in cash or in a variable number of shares.)
","snippet":"A financial instrument composed of more than one option or forward contract embodying obligations to issue shares must be analyzed to determine whether the obligations under any of its components have one of the characte…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc6e1b0f98ea1c982b2543f217f65af8a5465b3f4acbbc62923b0666076738d4","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-43","para":"55-43","html":"
The analysis can be summarized in two steps:
  1. a
    Identify any component obligations that, if freestanding, would be liabilities under paragraph 480-10-25-14. Also identify the other component obligation(s) of the financial instrument.
  2. b
    Assess whether the monetary value of any obligations embodied in components that, if freestanding, would be liabilities under paragraph 480-10-25-14 is (collectively) predominant over the (collective) monetary value of other component obligation(s). If so, account for the entire instrument under that paragraph. If not, the financial instrument is not in the scope of this Subtopic and other guidance applies.
","snippet":"The analysis can be summarized in two steps:\n(a) Identify any component obligations that, if freestanding, would be liabilities under paragraph 480-10-25-14. Also identify the other component obligation(s) of the financi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e5955179c21c4ef7e3e1d5b6a73b66a3b7907b001c59a226a5d2c112f974fe8d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-44","para":"55-44","html":"
In an instrument that allows the holder either to purchase a fixed number of the issuer's shares at a fixed price or to compel the issuer to reacquire the instrument at a fixed date for shares equal to a fixed monetary amount known at inception, the holder's choice will depend on the issuer's share price at the settlement date. The issuer must analyze the instrument at inception and consider all possible outcomes to judge which obligation is predominant. To do so, the issuer considers all pertinent information as applicable, which may include its current stock price and volatility, the strike price of the instrument, and any other factors. If the issuer judges the obligation to issue a variable number of shares based on a fixed monetary amount known at inception to be predominant, the instrument is a liability under paragraph 480-10-25-14. Otherwise, the instrument is not a liability under this Subtopic but is subject to other applicable guidance such as Subtopic 815-40.
","snippet":"In an instrument that allows the holder either to purchase a fixed number of the issuer's shares at a fixed price or to compel the issuer to reacquire the instrument at a fixed date for shares equal to a fixed monetary a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:738ec28d65d1b35247f83a09aeb9192bc2fe06a2778a35f08cd8ce7c300e9f69","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-45","para":"55-45","html":"
Entity C issues a puttable warrant to Holder. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. The put feature allows Holder instead to put the warrant back to Entity C on that date for $2, settleable in fractional shares. If the share price on the settlement date is greater than $12, Holder would be expected to exercise the warrant, obligating Entity C to issue a fixed number of shares in exchange for a fixed amount of cash; the monetary value of the shares varies directly with changes in the share price above $12. If the share price is equal to or less than $12, Holder would be expected to put the warrant back to Entity C obligating the entity to issue a variable number of shares with a fixed monetary value, known at inception, of $2. Thus, at inception, the number of shares that the puttable warrant obligates Entity C to issue can vary, and the financial instrument must be examined under paragraph 480-10-25-14.
","snippet":"Entity C issues a puttable warrant to Holder. The warrant feature allows Holder to purchase 1 equity share at a strike price of $10 on a specified date. The put feature allows Holder instead to put the warrant back to En…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4be60e385a3c386fa8527d33883d4b2ec857dd24ca63b1fcee635ca1719ddb9d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-46","para":"55-46","html":"
The facts and circumstances should be considered in judging whether the monetary value of the obligation to issue a number of shares that varies is predominantly based on a fixed monetary amount known at inception; if so, it is a liability under paragraph 480-10-25-14(a). For example, if the following circumstances existed, they would suggest that the monetary value of the obligation to issue shares would be judged to be based predominantly on a fixed monetary amount known at inception ($2 worth of shares), and the instrument would be classified as a liability:
  1. a
    Entity C's share price is well below the $10 exercise price of the warrant at inception of the instrument.
  2. b
    The warrant has a short life.
  3. c
    Entity C's stock is determined to have very low volatility.
","snippet":"The facts and circumstances should be considered in judging whether the monetary value of the obligation to issue a number of shares that varies is predominantly based on a fixed monetary amount known at inception; if so…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:824bd43398153fc8ab1331c24440e7eb376574cd155fa9dc807254ed2f98d453","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-47","para":"55-47","html":"
Entity E issues a warrant to Holder allowing Holder to purchase 1 equity share at a strike price of $10. The warrant has an embedded liquidity make-whole put that entitles Holder to receive from Entity E the net amount of any difference between the share price on the date the warrants are exercised and the sales price the holder receives when the shares are later sold. The make-whole provision is not legally detachable. Entity E can settle by issuing a variable number of shares. For example, if on the date Holder exercises the warrant, the share price is $15 and the share price subsequently decreases to $12 at the date Holder sells the shares, Holder would receive $3 worth of equity shares from Entity E.
","snippet":"Entity E issues a warrant to Holder allowing Holder to purchase 1 equity share at a strike price of $10. The warrant has an embedded liquidity make-whole put that entitles Holder to receive from Entity E the net amount o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e9d654ab9102f61cc842de9b76eb4b578714306aedbb89652ed6623adcd802d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-48","para":"55-48","html":"
The financial instrument embodies an obligation to deliver a number of shares that varies-either a fixed number of shares under exercise of the warrant or additional shares if the share price declines after the warrant is exercised. However, unless it is judged that the possibility of having to issue a variable number of shares with a monetary value that is inversely related to the share price is predominant, the financial instrument is not in the scope of paragraph 480-10-25-14(c) and would be evaluated under Subtopic 815-40.
","snippet":"The financial instrument embodies an obligation to deliver a number of shares that varies-either a fixed number of shares under exercise of the warrant or additional shares if the share price declines after the warrant i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de1bbb46f6cd31470c0f3912a7d3ff5d285e6029f61a8f65d436b438fc2edd96","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-49","para":"55-49","html":"
If exercisability of a feature into a fixed or variable number of shares is contingent on both the occurrence or nonoccurrence of a specified event and the issuer's share price, a financial instrument settleable in a number of shares that can vary should be analyzed following the same method as for the examples in paragraphs 480-10-55-45 and 480-10-55-50 to consider all possibilities. In some cases, it may be determined that the instrument may not be within the scope of paragraph 480-10-25-14 and thus not a liability under this Subtopic. That determination depends on whether the obligation to deliver a variable number of shares, with a monetary value based on either a fixed monetary amount known at inception or an inverse relationship with the share price, is predominant at inception.
","snippet":"If exercisability of a feature into a fixed or variable number of shares is contingent on both the occurrence or nonoccurrence of a specified event and the issuer's share price, a financial instrument settleable in a num…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5dddfbe63664f8c1fc9b232986b1b8863d1a72edf48c4386943db9e02b182b48","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-50","para":"55-50","html":"
Entity D enters into a contract to issue shares of Entity D's stock to Counterparty in exchange for $50 on a specified date. If Entity D's share price is equal to or less than $50 on the settlement date, Entity D will issue 1 share to Counterparty. If the share price is greater than $50 but equal to or less than $60, Entity D will issue $50 worth of fractional shares to Counterparty. Finally, if the share price is greater than $60, Entity D will issue .833 shares. At inception, the share price is $49. Entity D has an obligation to issue a number of shares that can vary; therefore, paragraph 480-10-25-14 may apply. However, unless it is determined that the monetary value of the obligation to issue a variable number of shares is predominantly based on a fixed monetary amount known at inception (as it is in the $50 to $60 share price range), the financial instrument is not in the scope of this Subtopic.
","snippet":"Entity D enters into a contract to issue shares of Entity D's stock to Counterparty in exchange for $50 on a specified date. If Entity D's share price is equal to or less than $50 on the settlement date, Entity D will is…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08554381d2f9cf10c3ac8fe5a7106754c286addd4833739593ed59fc9a8eebe5","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-51","para":"55-51","html":"
Some financial instruments that are composed of more than one option or forward contract embody an obligation to issue a fixed number of shares and, once those shares are issued, potentially to issue a variable number of additional shares. The issuer must analyze that kind of financial instrument, at inception, to assess whether the possibility of issuing a variable number of shares in which the monetary value of that obligation meets one of the conditions in paragraph 480-10-25-14 is predominant.
","snippet":"Some financial instruments that are composed of more than one option or forward contract embody an obligation to issue a fixed number of shares and, once those shares are issued, potentially to issue a variable number of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10395aaeacd193aa143af6fe00c474cdcd333f75273588dd68d57c6fd8eb4b70","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-52","para":"55-52","html":"
Entity F has a share-settleable puttable warrant that provides that the put feature is exercisable only if Entity F fails to accomplish an operational plan (for example, failure to complete a building within two years). If at inception the possibility that both the building will not be completed in two years and the put will be exercised is judged to be predominant, the put warrant would be recognized as a liability under paragraph 480-10-25-14(a).
","snippet":"Entity F has a share-settleable puttable warrant that provides that the put feature is exercisable only if Entity F fails to accomplish an operational plan (for example, failure to complete a building within two years). …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aeb6858b41f9319c901e026d54d520c1cf82ffd4ecbb471e2cfdc73fa663f7dc","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-53","para":"55-53","html":"
A controlling majority owner (parent) holds 80 percent of a subsidiary's equity shares. The remaining 20 percent (the noncontrolling interest) is owned by an unrelated entity (the noncontrolling interest holder). Simultaneous with the acquisition of the noncontrolling interest, the noncontrolling interest holder and the parent enter into a derivative instrument that is indexed to the subsidiary's equity shares. The terms of the derivative instrument may be any of the following:
  1. a
    The parent has a fixed-price forward contract to buy the other 20 percent at a stated future date. (Derivative 1)
  2. b
    The parent has a call option to buy the other 20 percent at a fixed price at a stated future date, and the noncontrolling interest holder has a put option to sell the other 20 percent to the parent under those same terms, that is, the fixed price of the call is equal to the fixed price of the put option. (Derivative 2)
  3. c
    The parent and the noncontrolling interest holder enter into a total return swap. The parent will pay to the counterparty (initially the noncontrolling interest holder) an amount computed based on the London Interbank Offered Rate (LIBOR), plus an agreed spread, plus, at the termination date, any net depreciation of the fair value of the 20 percent interest since inception of the swap. The counterparty will pay to the parent an amount equal to dividends paid on the 20 percent interest and, at the termination date, any net appreciation of the fair value of the 20 percent interest since inception of the swap. At the termination date, the net change in the fair value of the 20 percent interest may be determined through an appraisal or the sale of the stock. (Derivative 3)
","snippet":"A controlling majority owner (parent) holds 80 percent of a subsidiary's equity shares. The remaining 20 percent (the noncontrolling interest) is owned by an unrelated entity (the noncontrolling interest holder). Simulta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e51c853c3137f99f1d3d1c1c0be179dbb390325e94d1a74da863b760424f7c4d","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-54","para":"55-54","html":"
If the terms correspond with Derivative 1, the forward purchase contract that requires physical settlement by repurchase of a fixed number of shares (the noncontrolling interest) in exchange for cash is recognized as a liability, initially measured at the present value of the contract amount; the noncontrolling interest is correspondingly reduced. Subsequently, accrual to the contract amount and any amounts paid or to be paid to holders of those contracts are reflected as interest cost. In effect, the parent accounts for the transaction as a financing of the noncontrolling interest and, consequently, consolidates 100 percent of the subsidiary.
","snippet":"If the terms correspond with Derivative 1, the forward purchase contract that requires physical settlement by repurchase of a fixed number of shares (the noncontrolling interest) in exchange for cash is recognized as a l…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e3f21a9529737ed680c1e815856954ae3630d04c58018fe92a091d013375879","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-55","para":"55-55","html":"
Depending on how Derivative 2 was issued, one of three different accounting methods applies. If Derivative 2 was issued as a single freestanding instrument, under this Subtopic it would be accounted for in its entirety as a liability (or an asset in some circumstances), initially and subsequently measured at fair value. If the written put option and the purchased call option in Derivative 2 were issued as freestanding instruments, the written put option would be accounted for under this Subtopic as a liability measured at fair value, and the purchased call option would be accounted for under Subtopic 815-40. Under both of those situations, the noncontrolling interest is accounted for separately from the derivative instrument under applicable guidance. However, if the written put option and purchased call option are embedded in the shares (noncontrolling interest) and the shares are not otherwise classified as liabilities under the guidance in this Subtopic, the instrument shall be accounted for as discussed in paragraph 480-10-55-59 with the parent consolidating 100 percent of the subsidiary.
","snippet":"Depending on how Derivative 2 was issued, one of three different accounting methods applies. If Derivative 2 was issued as a single freestanding instrument, under this Subtopic it would be accounted for in its entirety a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a556eb6e4fa7e30c582371a9415847650ee382c41b8c181a7d1194a7d30e73be","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-56","para":"55-56","html":"
If the terms correspond with Derivative 3, the total return swap is indexed to an obligation to repurchase the issuer's shares and may require the issuer to settle the obligation by transferring assets. Therefore it is in the scope of this Subtopic and is required to be accounted for as a liability (or asset in some circumstances), initially, and subsequently measured at fair value. The noncontrolling interest is accounted for separately from the total return swap.
","snippet":"If the terms correspond with Derivative 3, the total return swap is indexed to an obligation to repurchase the issuer's shares and may require the issuer to settle the obligation by transferring assets. Therefore it is i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:625918decead8ae0b72c3eeb08f501283680d0980eea85f8cc7f65ce80103b24","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-57","para":"55-57","html":"
In applying paragraphs
480-10-25-4 through 25-14
to determine classification, a freestanding financial instrument within this Subtopic's scope is precluded from being combined with another freestanding financial instrument, unless combination is required under the provisions of Topic 815; therefore, unless under the particular facts and circumstances that Topic provides otherwise, freestanding derivative instruments in the scope of this Subtopic would not be combined with the noncontrolling interest.
","snippet":"In applying paragraphs 480-10-25-4 through 25-14 to determine classification, a freestanding financial instrument within this Subtopic's scope is precluded from being combined with another freestanding financial instrume…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:590b5bea2f2b4a25b39f5c3d9c7b7cfa5b5a6ea2f69d115ce83dc3c0a16afd9f","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-58","para":"55-58","html":"
This guidance is limited to circumstances in which the parent owns a majority of the subsidiary's outstanding common stock and consolidates that subsidiary at inception of the derivative instrument. This guidance is limited to the specific derivative instruments described.
","snippet":"This guidance is limited to circumstances in which the parent owns a majority of the subsidiary's outstanding common stock and consolidates that subsidiary at inception of the derivative instrument. This guidance is limi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:563e3b665e758d6a22bdf57b04edfcebafd75d14033da3dd0a871ce1da3b7f59","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-59","para":"55-59","html":"
If the derivative instrument in Derivative 2 is embedded in the shares (noncontrolling interest) and the shares are not otherwise classified as liabilities under the guidance in this Subtopic, the combination of options should be viewed on a combined basis with the noncontrolling interest and accounted for as a financing of the parent's purchase of the noncontrolling interest.
","snippet":"If the derivative instrument in Derivative 2 is embedded in the shares (noncontrolling interest) and the shares are not otherwise classified as liabilities under the guidance in this Subtopic, the combination of options …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf74257c4f560f7c051675a8b9be0bfae7883213810068c865bea697eae3344f","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-60","para":"55-60","html":"
Under that approach, the parent would consolidate 100 percent of the subsidiary and would attribute the stated yield earned under the combined derivative instrument and noncontrolling interest position to interest expense (that is, the financing would be accreted to the strike price of the forward or option over the period until settlement). No gain or loss would be recognized on the sale of the noncontrolling interest by the parent to the noncontrolling interest holder at the inception of the derivative instrument.
","snippet":"Under that approach, the parent would consolidate 100 percent of the subsidiary and would attribute the stated yield earned under the combined derivative instrument and noncontrolling interest position to interest expens…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43c95c657c4713c69e2491ca87ecc6c0a6635b4eef5cfbaaa1fdf5eb71515ebe","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-61","para":"55-61","html":"
The risks and rewards of owning the noncontrolling interest have been retained by the parent during the period of the derivative instrument, notwithstanding the legal ownership of the noncontrolling interest by the counterparty. Combining the two transactions in this circumstance reflects the substance of the transactions; that the counterparty is financing the noncontrolling interest. Upon such combination, the resulting instrument is not a derivative instrument subject to Subtopic 815-10.
","snippet":"The risks and rewards of owning the noncontrolling interest have been retained by the parent during the period of the derivative instrument, notwithstanding the legal ownership of the noncontrolling interest by the count…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bf73dc01aae5a8068d9cffad5b16f9db7830184692e69d891c81c141cf20ec4","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-62","para":"55-62","html":"
This accounting applies even if the exercise prices of the put and call options are not equal, as long as those exercise prices are not significantly different.
","snippet":"This accounting applies even if the exercise prices of the put and call options are not equal, as long as those exercise prices are not significantly different.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7ba0940e8a597cfb1b0b63505866b450f7d74a707de4a3fc84a0d6beca94eaed","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"citation":"480-10-55-63","para":"55-63","html":"
The following table addresses classification of freestanding written put options and forward purchase contracts within the scope of this Subtopic.
","snippet":"The following table addresses classification of freestanding written put options and forward purchase contracts within the scope of this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3bf47ccb3e30550eace71a438b48c962ced9c5c01ec42d4d2ede7a214cf9d5af","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a87caf784b82ac9b4ac1c4f8eaf8f0e14da2fdd9ead61fad32458144ab985c8","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"480-10-55-64","para":"55-64","html":"
This Example illustrates the application of the guidance in this Subtopic to stock to be redeemed upon the death of the holder. An entity may issue shares of stock that are required to be redeemed upon the death of the holder for a proportionate share of the book value of the entity. The death of the holder is an event that is certain to occur. Therefore, the stock is classified as a liability. (An insurance contract that would cover the cost of the redemption does not affect the classification of the stock as a liability.) If the stock represents the only shares in the entity, the entity reports those instruments in the liabilities section of its statement of financial position and describes them as shares subject to mandatory redemption so as to distinguish the instruments from other financial statement liabilities. The issuer presents interest cost and payments to holders of such instruments separately, apart from interest and payments to other creditors, in statements of income and cash flows. The entity also discloses that the instruments are mandatorily redeemable upon the death of the holders. The following presentation is an example of the required presentation and disclosure for entities that have no equity instruments outstanding but have shares, all of which are mandatorily redeemable financial instruments classified as liabilities.
","snippet":"This Example illustrates the application of the guidance in this Subtopic to stock to be redeemed upon the death of the holder. An entity may issue shares of stock that are required to be redeemed upon the death of the h…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:201ddd57c49b7e2a35b8819eb43d9bdca40ec53b0befe55ea233b13e2943d7db","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dacde510896f79b59fa56404c91ea6846a29c6913c5edafa7e27d75784fc9aa7","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:969a34a79ae012de5ee28a31f42687ed44875a04c7edac67dbd6199f584628a7","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:969a34a79ae012de5ee28a31f42687ed44875a04c7edac67dbd6199f584628a7","downloaded_from":"2026-09-10T00:35:56.199Z","last_downloaded_at":"2026-09-10T00:35:56.199Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481620","source_sha256":"e938dab481f498826e77b7fbf8e5584de05811a3be2e7d457f921d7c64b3f77d"}}