{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/505/10/#00-status","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"505","topic_title":"Equity","subtopic":"505-10","subtopic_title":"Overall","section":{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"505-10-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL7706782-161539\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#contingently-convertible-instruments\" class=\"term\" title=\"Contingently convertible instruments are instruments that have embedded conversion features that are contingently convertible or exercisable based on either of the following: A market price trigger Multiple contingencies if one of the contingencies is a market price trigger and the instrument can be converted or share settled based on meeting the specified market condition. A market price trigger is a market condition that is based at least in part on the issuer's own share price. Examples of contingently convertible instruments include contingently convertible debt, contingently convertible preferred stock, and the instrument described by paragraph 260-10-45-43, all with embedded market price triggers.\"><span>Contingently Convertible Instruments</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#convertible-security\" class=\"term\" title=\"A security that is convertible into another security based on a conversion rate. For example, convertible preferred stock that is convertible into common stock on a two-for-one basis (two shares of common for each share of preferred).\"><span>Convertible Security</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#down-round-feature\" class=\"term\" title=\"A feature in a financial instrument that reduces the strike price of an issued financial instrument if the issuer sells shares of its stock for an amount less than the currently stated strike price of the issued financial instrument or issues an equity-linked financial instrument with a strike price below the currently stated strike price of the issued financial instrument. A down round feature may reduce the strike price of a financial instrument to the current issuance price, or the reduction may be limited by a floor or on the basis of a formula that results in a price that is at a discount to the original exercise price but above the new issuance price of the shares, or may reduce the strike price to below the current issuance price. A standard antidilution provision is not considered a down round feature.\"><span>Down Round Feature</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/glossary/e/#equity-restructuring\" class=\"term\" title=\"A nonreciprocal transaction between an entity and its shareholders that causes the per-share fair value of the shares underlying an option or similar award to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, nonrecurring cash dividend.\"><span>Equity Restructuring</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/glossary/f/#financial-instrument\" class=\"term\" title=\"Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.\"><span>Financial Instrument</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2024-02/\" class=\"xref\">Accounting Standards Update No. 2024-02</a></td><td class=\"entry\">03/29/2024</td></tr><tr><td class=\"entry\"><a href=\"/glossary/f/#financial-instrument\" class=\"term\" title=\"Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. All contractual rights (contractual obligations) that are financial instruments meet the definition of asset (liability) set forth in FASB Concepts Statement No. 6, Elements of Financial Statements, although some may not be recognized as assets (liabilities) in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity. (P) December 16, 2024; (N) December 16, 2025105-10-65-9Cash, evidence of an ownership interest in an entity, or a contract that both: Imposes on one entity a contractual obligation either: To deliver cash or another financial instrument to a second entity To exchange other financial instruments on potentially unfavorable terms with the second entity. Conveys to that second entity a contractual right either: To receive cash or another financial instrument from the first entity To exchange other financial instruments on potentially favorable terms with the first entity. The use of the term financial instrument in this definition is recursive (because the term financial instrument is included in it), though it is not circular. The definition requires a chain of contractual obligations that ends with the delivery of cash or an ownership interest in an entity. Any number of obligations to deliver financial instruments can be links in a chain that qualifies a particular contract as a financial instrument. Contractual rights and contractual obligations encompass both those that are conditioned on the occurrence of a specified event and those that are not. Some contractual rights (contractual obligations) that are financial instruments may not be recognized in financial statements—that is, they may be off-balance-sheet—because they fail to meet some other criterion for recognition. For some financial instruments, the right is held by or the obligation is due from (or the obligation is owed to or by) a group of entities rather than a single entity.\"><span>Financial Instrument</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/glossary/r/#registration-payment-arrangement\" class=\"term\" title=\"An arrangement with both of the following characteristics: It specifies that the issuer will endeavor to do either of the following: File a registration statement for the resale of specified financial instruments and/or for the resale of equity shares that are issuable upon exercise or conversion of specified financial instruments and for that registration statement to be declared effective by the U.S. Securities and Exchange Commission (SEC) (or other applicable securities regulator if the registration statement will be filed in a foreign jurisdiction) within a specified grace period Maintain the effectiveness of the registration statement for a specified period of time (or in perpetuity). It requires the issuer to transfer consideration to the counterparty if the registration statement for the resale of the financial instrument or instruments subject to the arrangement is not declared effective or if effectiveness of the registration statement is not maintained. That consideration may be payable in a lump sum or it may be payable periodically, and the form of the consideration may vary. For example, the consideration may be in the form of cash, equity instruments, or adjustments to the terms of the financial instrument or instruments that are subject to the registration payment arrangement (such as an increased interest rate on a debt instrument).\"><span>Registration Payment Arrangement</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Security (1st def.)</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/glossary/s/#standard-antidilution-provisions\" class=\"term\" title=\"Standard antidilution provisions are those that result in adjustments to the conversion ratio in the event of an equity restructuring transaction that are designed to maintain the value of the conversion option.\"><span>Standard Antidilution Provisions</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-05-1\" class=\"xref\">505-10-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-07/\" class=\"xref\">Accounting Standards Update No. 2018-07</a></td><td class=\"entry\">06/20/2018</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-05-3\" class=\"xref\">505-10-05-3</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/505/10/#505-10-05-5\" class=\"xref\">505-10-05-5 through 05-7</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-15-1\" class=\"xref\">505-10-15-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-15-2\" class=\"xref\">505-10-15-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2026-01/\" class=\"xref\">Accounting Standards Update No. 2026-01</a></td><td class=\"entry\">04/23/2026</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-15-2\" class=\"xref\">505-10-15-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-15-3\" class=\"xref\">505-10-15-3</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2026-01/\" class=\"xref\">Accounting Standards Update No. 2026-01</a></td><td class=\"entry\">04/23/2026</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-15-4\" class=\"xref\">505-10-15-4</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2026-01/\" class=\"xref\">Accounting Standards Update No. 2026-01</a></td><td class=\"entry\">04/23/2026</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-25-3\" class=\"xref\">505-10-25-3</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-07/\" class=\"xref\">Accounting Standards Update No. 2018-07</a></td><td class=\"entry\">06/20/2018</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-30-1\" class=\"xref\">505-10-30-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2026-01/\" class=\"xref\">Accounting Standards Update No. 2026-01</a></td><td class=\"entry\">04/23/2026</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-35-1\" class=\"xref\">505-10-35-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-45-2\" class=\"xref\">505-10-45-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2015-10/\" class=\"xref\">Accounting Standards Update No. 2015-10</a></td><td class=\"entry\">06/12/2015</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-50-3\" class=\"xref\">505-10-50-3</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-50-3A\" class=\"xref\">505-10-50-3A</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-50-4\" class=\"xref\">505-10-50-4</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2023-06/\" class=\"xref\">Accounting Standards Update No. 2023-06</a></td><td class=\"entry\">10/09/2023</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-50-6\" class=\"xref\">505-10-50-6 through 50-10A</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-50-8\" class=\"xref\">505-10-50-8</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/asc-pdf/GUID-8C0B93FE-237A-4BFA-8880-FE749B3CAFCB.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2016-11 (PDF)</a></td><td class=\"entry\">06/27/2016</td></tr><tr><td class=\"entry\"><div class=\"xref-range displayInline\"><a href=\"/asc/505/10/#505-10-50-12\" class=\"xref\">505-10-50-12 through 50-18</a></div></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-60-1\" class=\"xref\">505-10-60-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2011-05/\" class=\"xref\">Accounting Standards Update No. 2011-05</a></td><td class=\"entry\">06/16/2011</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-60-2\" class=\"xref\">505-10-60-2</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2020-06/\" class=\"xref\">Accounting Standards Update No. 2020-06</a></td><td class=\"entry\">08/05/2020</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-60-6\" class=\"xref\">505-10-60-6</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-60-7\" class=\"xref\">505-10-60-7</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2017-11/\" class=\"xref\">Accounting Standards Update No. 2017-11</a></td><td class=\"entry\">07/13/2017</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-60-8\" class=\"xref\">505-10-60-8</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2021-04/\" class=\"xref\">Accounting Standards Update No. 2021-04</a></td><td class=\"entry\">05/03/2021</td></tr><tr><td class=\"entry\"><a href=\"/asc/505/10/#505-10-65-1\" class=\"xref\">505-10-65-1</a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2026-01/\" class=\"xref\">Accounting Standards Update No. 2026-01</a></td><td class=\"entry\">04/23/2026</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nContingently Convertible Instruments | Added | Accounting Standards Update No. 2020-06 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