# ASC 505-10-50: Equity — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/505/10/#50-disclosure) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:6591ef421d4ab048413e543820a35410fe860f7d1868a5d8daab964511b55b3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 505-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/505/10/#50-disclosure) SEC content: no ##### [505-10-50-1](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:1d489c6b583cc3f2e54fbf8c5527aed6008c71c8e103b0fc406897cff3a3a681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides guidance on the disclosure requirements associated with the separate accounts comprising shareholders' equity and the specific outstanding securities issued by an entity. ##### [505-10-50-2](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:c332aff5d32149728382eac4adf05575c56b4928a63c0eb75e26b6e785fecaff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If both financial position and results of operations are presented, disclosure of changes in the separate accounts comprising shareholders' equity (in addition to retained earnings) and of the changes in the number of shares of equity securities during at least the most recent annual fiscal period and any subsequent interim period presented is required to make the financial statements sufficiently informative. Disclosure of such changes may take the form of separate statements or may be made in the basic financial statements or notes thereto. ##### [505-10-50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:c4039652b03449c2981a17942de4e1f3b06e9349265b0d070064e1d6b0ae7a2e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall explain, in summary form within its financial statements, the pertinent rights and privileges of the various securities outstanding. Examples of information that shall be disclosed are dividend and liquidation preferences, [participation rights](https://asc.understandingaccounting.org/glossary/p/#participation-rights "Contractual rights of security holders to receive dividends or returns from the security issuer's profits, cash flows, or returns on investments."), call prices and dates, conversion or exercise prices or rates and pertinent dates, sinking-fund requirements, unusual voting rights, and significant terms of contracts to issue additional shares or terms that may change conversion or exercise prices (excluding [standard antidilution provisions](https://asc.understandingaccounting.org/glossary/s/#standard-antidilution-provisions "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.")). An entity shall disclose within its financial statements the number of shares issued upon conversion, exercise, or satisfaction of required conditions during at least the most recent annual fiscal period and any subsequent interim period presented. An entity also shall disclose within the financial statements actual changes to conversion or exercise prices that occur during the reporting period (excluding changes due to standard antidilution provisions). ##### [505-10-50-3A](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3A) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:fdcd3bc574a8e3810dc4fb0af6099ed65a5e39d2545a5b92277073bb5b8cfcb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a [financial instrument](https://asc.understandingaccounting.org/glossary/f/#financial-instrument "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.") with a [down round feature](https://asc.understandingaccounting.org/glossary/d/#down-round-feature "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.") that has been triggered during the reporting period and for which an entity has recognized the effect in accordance with paragraph [260-10-25-1](https://asc.understandingaccounting.org/asc/260/10/#260-10-25-1), an entity shall disclose the following: 1. a The fact that the feature has been triggered 2. b The value of the effect of the down round feature that has been triggered. #### Securities with Preferences ##### [505-10-50-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-4) Pending content: yes Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:07a05e90c6554df6dbc59ddebc789f3444afbc7067c692d7176fbfc3ec363ef4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that issues [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") (or other senior stock) that has a preference in involuntary liquidation considerably in excess of the par or stated value of the shares shall disclose the liquidation preference of the stock (the relationship between the preference in liquidation and the par or stated value of the shares). That disclosure shall be made in the equity section of the statement of financial position in the aggregate, either parenthetically or in short, rather than on a per-share basis or through disclosure in the notes. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)An entity that issues [preferred stock](https://asc.understandingaccounting.org/glossary/p/#preferred-stock "A security that has preferential rights compared to common stock.") (or other senior stock) that has a preference in involuntary liquidation other than par or stated value of the shares shall disclose the liquidation preference of the stock (the relationship between the preference in liquidation and the par or stated value of the shares). That disclosure shall be made in the equity section of the statement of financial position in the aggregate, either parenthetically or in short, rather than on a per-share basis or through disclosure in the notes. ##### [505-10-50-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d7d76d7d04b17d6f5342a87658eab542bd5c9b9091a5708acc9e562c6fd7ce09 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition, an entity shall disclose both of the following within its financial statements (either on the face of the statement of financial position or in the notes thereto): 1. a The aggregate or per-share amounts at which preferred stock may be called or is subject to redemption through sinking-fund operations or otherwise 2. b The aggregate and per-share amounts of arrearages in cumulative preferred dividends. ##### [505-10-50-6](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:78a7498f4910d9111294d809d85df7502cb3d27e5e8d319a9baad664116db953 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:235f2a26948dca483c77c906a201d09faf98c9b984014ead572972f282cb8fbe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-8](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d8830cb9254dc64a7b0ff91ea4ceb59f01839ddfa9dd15ab943cbf4876092584 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-9](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:f2f43a6c197f0c0052750fc418c6041bb14fad6a1c78ed4dc1f1a61caed67cb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-10](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:425a9c8d517160fee137ccaa9f2046ffc867f7d5373f1f353f89784f5b054331 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). ##### [505-10-50-10A](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-10A) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:7d16dfec0fb04a0273341a9072529814d5264bdc1d48723dc790d672eaf4f740 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2020-06](https://asc.understandingaccounting.org/updates/asu-2020-06/). #### Redeemable Securities ##### [505-10-50-11](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:11bef9945b22d595b285503bacb14ab452a863257dd22424668abc6b6ff1a160 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity that issues redeemable stock shall disclose the amount of redemption requirements, separately by issue or combined, for all issues of capital stock that are redeemable at fixed or determinable prices on fixed or determinable dates in each of the five years following the date of the latest statement of financial position presented. #### Convertible Preferred Stock ##### [505-10-50-12](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:d717d25b2747038a3e8d029d5dbeda9c47ef9279863a7fd436eab52322a833c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of the disclosure about convertible preferred stock is to provide users of financial statements with: 1. a Information about the terms and features of convertible preferred stock 2. b An understanding of how those instruments have been reported in an entity's statement of financial position and statement of financial performance 3. c Information about events, conditions, and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. ##### [505-10-50-13](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:bae1ce84446df5c6a79c968d04d40febd94d089d7f9fa9f7ba8b883f3383af98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To comply with the general disclosure requirements of paragraph [505-10-50-3](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-3), an entity shall explain the pertinent rights and privileges of each outstanding instrument, including, but not limited to, the following information: 1. a Number of shares issued and par value 2. b Dividends 3. c Conversion or exercise prices or rates and number of shares into which the instrument is potentially convertible 4. d Pertinent dates, such as conversion date(s) 5. e Parties that control the conversion rights 6. f Manner of settlement upon conversion and any alternative settlement methods, such as cash, shares, or a combination of cash and shares 7. g Terms that may change conversion or exercise prices, number of shares to be issued, or other conversion rights and the timing of those rights (excluding standard antidilution provisions) 8. h Liquidation preference required by paragraph [505-10-50-4](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-4) and unusual voting rights 9. i Other material terms and features of the instrument that are not listed above. ##### [505-10-50-14](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:87165e4092c17fe352ad4233f5b3b4683ec6117ca98e40dc2457ae73a6a45d51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall provide the following incremental information for [contingently convertible instruments](https://asc.understandingaccounting.org/glossary/c/#contingently-convertible-instruments "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.") or the instruments that are described in paragraphs [505-10-05-6 through 05-7](https://asc.understandingaccounting.org/asc/505/10/#505-10-05-6) : 1. a Events or changes in circumstances that would adjust or change the contingency or would cause the contingency to be met 2. b Information on whether the shares that would be issued if the contingently convertible securities were converted are included in the calculation of diluted earnings per share (EPS) and the reasons why or why not 3. c Other information that is helpful in understanding both the nature of the contingencies and the potential impact of conversion. ##### [505-10-50-15](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:a2c98380e6e47c5b662169509eb7978db69798fb8bbf29b914818c7fa303f0fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the amount of dividends declared for each period for which a statement of financial performance is presented, in addition to the disclosures required by paragraph [505-10-50-5](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-5). ##### [505-10-50-16](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:e3885004235f50b55936d827ee67b1d45562db8b124080ba415a5186f5e23fd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following as of the date of the latest statement of financial position presented: 1. a Changes to conversion or exercise prices that occur during the reporting period other than changes due to standard antidilution provisions 2. b Events or changes in circumstances that occur during the reporting period that cause conversion contingencies to be met or conversion terms to be significantly changed 3. c The number of shares issued upon conversion, exercise, or satisfaction of required conditions during the reporting period. ##### [505-10-50-17](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:e80e7238e4ea8fe6d073d920f0e6cd8a138cf36c6170ab02b9b79c107f4daed5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a conversion option is accounted for as a derivative in accordance with Subtopic 815-15, an entity shall provide disclosures in accordance with Topic 815 for the conversion option in addition to the disclosures required by the guidance in this Section, if applicable. ##### [505-10-50-18](https://asc.understandingaccounting.org/asc/505/10/#505-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:36:56.123Z to 2026-09-10T00:36:56.123Z Record version: sha256:fb155cfa8d76ab2c6c4302a037d29cc9789344e51e635bfde885d4cd6aadd530 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity shall disclose the following information about derivative transactions entered into in connection with the issuance of convertible preferred stock within the scope of this Subtopic regardless of whether such derivative transactions are accounted for as assets, liabilities, or equity instruments: 1. a The terms of those derivative transactions (including the terms of settlement) 2. b How those derivative transactions relate to the instruments within the scope of this Subtopic 3. c The number of shares underlying the derivative transactions 4. d The reasons for entering into those derivative transactions.