{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/815/40/#50-disclosure","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":"815","topic_title":"Derivatives and Hedging","subtopic":"815-40","subtopic_title":"Contracts in Entity's Own Equity","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"815-40-50-1","para":"50-1","html":"
Paragraph superseded by Accounting Standards Update No. 2020-06.
","snippet":"Paragraph superseded by Accounting Standards Update No. 2020-06.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:336e1aec179a4e48a63ea1020a616addd8b332747981b4231dc0623acd5d8bd6","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"citation":"815-40-50-1A","para":"50-1A","html":"
The disclosure guidance in this Section should help a user of financial statements understand the following:
  1. a
    Information about the terms and features of contracts in an entity's own equity within the scope of this Subtopic
  2. b
    How those instruments have been reflected in the issuer'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 but has not yet been reflected in the financial statements.
","snippet":"The disclosure guidance in this Section should help a user of financial statements understand the following:\n(a) Information about the terms and features of contracts in an entity's own equity within the scope of this Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1232b7b6c27bfcf86acb3eb12ce863a8eaeff48062fc16a0c41252e31633d278","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"citation":"815-40-50-2","para":"50-2","html":"
The disclosure guidance in this Subtopic applies to freestanding instruments that are potentially indexed to, and potentially settled in, an entity's own equity, regardless of whether the contract meets the criteria to qualify for the scope exception in Sections 815-40-15 and 815-40-25. Some contracts that are classified as assets or liabilities meet the definition of a derivative instrument under the provisions of Subtopic 815-10. The related disclosures that are required by Sections 815-10-50, 815-25-50, 815-30-50, and 815-35-50 also are required for those contracts. Equity-classified contracts under the provisions of this Subtopic are not required to provide the disclosures required by Section 505-10-50, other than those described in paragraph 815-40-50-5.
","snippet":"The disclosure guidance in this Subtopic applies to freestanding instruments that are potentially indexed to, and potentially settled in, an entity's own equity, regardless of whether the contract meets the criteria to q…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b70edb3e0f6c10bcf96fba56afbf3bcca81bfe6d7b263a9530c5ca2efde5c5d","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eccc0c4770210e439351576045e4e68c15a8a1dd947b3ed2e80a442cfe8d6899","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"block":null,"heading":"Fair Value Disclosures","paragraphs":[{"citation":"815-40-50-2A","para":"50-2A","html":"
Changes in the fair value of all contracts classified as assets or liabilities shall be disclosed in the financial statements as long as the contracts remain classified as assets or liabilities.
Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:
270-10-65-1For interim and annual reporting periods, changes in the fair value of all contracts classified as assets or liabilities shall be disclosed in the financial statements as long as the contracts remain classified as assets or liabilities.
","snippet":"Changes in the fair value of all contracts classified as assets or liabilities shall be disclosed in the financial statements as long as the contracts remain classified as assets or liabilities. Transition date:(P) Decem…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a5304671941b5d1598658355ee6ae1e6979500760a3b1ef1e63119915bc55439","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:90bf907ecf7411ad884ece58d5f7dd57e4f25d266768e56ec65a7f91f344e82c","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"block":null,"heading":"Reclassifications and Related Accounting Policy Disclosures","paragraphs":[{"citation":"815-40-50-3","para":"50-3","html":"
Contracts within the scope of this Subtopic may be required to be reclassified into (or out of) equity during the life of the instrument (in whole or in part) pursuant to the provisions of paragraphs
815-40-35-8 through 35-13
. An issuer shall disclose contract reclassifications (including partial reclassifications), the reason for the reclassification, and the effect on the issuer's financial statements.
","snippet":"Contracts within the scope of this Subtopic may be required to be reclassified into (or out of) equity during the life of the instrument (in whole or in part) pursuant to the provisions of paragraphs 815-40-35-8 through …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1243a4accbcc8f05b7b6961515bae7a3c85b42adc685bf240bd51c9504e0fabf","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"citation":"815-40-50-4","para":"50-4","html":"
The determination of how to partially reclassify contracts subject to this Subtopic is an accounting policy decision that shall be disclosed pursuant to Topic 235.
","snippet":"The determination of how to partially reclassify contracts subject to this Subtopic is an accounting policy decision that shall be disclosed pursuant to Topic 235.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0fa071c33d4c0c5109b35bf1c47126c30c3738a3db4c20f0e13b4b107b3aced","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81aaa2ed0ccd11b9a99cdb860f913062704112df9081506f303165f7e327df61","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"block":null,"heading":"Interaction with Disclosures about Capital Structure","paragraphs":[{"citation":"815-40-50-5","para":"50-5","html":"
The disclosures required by Section 505-10-50 apply to all contracts within the scope of this Subtopic as follows:
  1. a
    In the case of an option or forward contract indexed to the issuer's equity, the pertinent information to be disclosed under Section 505-10-50 about the contract includes all of the following:
    1. 1
      The forward rate
    2. 2
      The option strike price
    3. 3
      The number of issuer's shares to which the contract is indexed
    4. 4
      The settlement date or dates of the contract
    5. 5
      The issuer's accounting for the contract (that is, as an asset, liability, or equity).
  2. b
    If the terms of the contract provide settlement alternatives, those settlement alternatives shall be disclosed under Section 505-10-50, including all of the following:
    1. 1
      Who controls the settlement alternatives and a description of those alternatives
    2. 2
      The maximum number of shares that could be required to be issued to net share settle a contract, if applicable. Paragraph 505-10-50-3 requires additional disclosures for actual issuances and settlements that occurred during the accounting period.
  3. c
    If a contract does not have a fixed or determinable maximum number of shares that may be required to be issued, the fact that a potentially infinite number of shares could be required to be issued to settle the contract shall be disclosed under Section 505-10-50.
  4. d
    For each settlement alternative, the amount that would be paid, or the number of shares that would be issued and their fair value, determined under the conditions specified in the contract if the settlement were to occur at the reporting date and how changes in the fair value of the issuer's equity shares affect those settlement amounts (for example, the issuer is obligated to issue an additional X shares or pay an additional Y dollars in cash for each $1 decrease in the fair value of one share) shall be disclosed under Section 505-10-50. (For some issuers, a tabular format may provide the most concise and informative presentation of these data.)
  5. e
    The disclosures required by paragraph 505-10-50-11 shall be made for any equity instrument in the scope of this Subtopic that is (or would be if the issuer were a public entity) classified as temporary equity. (That paragraph applies to redeemable stock issued by nonpublic entities, regardless of whether the private entity chooses to classify those securities as temporary equity.)
  6. f
    The disclosures required by paragraph 505-10-50-18 also shall be made for an equity-classified contract within the scope of this Subtopic that is entered into in connection with the issuance of convertible preferred stock.
","snippet":"The disclosures required by Section 505-10-50 apply to all contracts within the scope of this Subtopic as follows:\n(a) In the case of an option or forward contract indexed to the issuer's equity, the pertinent informatio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b140b83d2b633491398566f6f002c0ba2996d4067f3e7420333cfeeae8af595a","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8249d1722dda0c3dbba480ff71b56b40e38e1e063729e739476b15cdc586b110","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},{"block":null,"heading":"Issuer's Accounting for Modifications or Exchanges of Freestanding Equity-Classified Written Call Options","paragraphs":[{"citation":"815-40-50-6","para":"50-6","html":"
For a freestanding equity-classified written call option modified or exchanged during any of the periods presented and for which an entity has recognized the effect in accordance with paragraph 815-40-35-17, an entity shall disclose the following:
  1. a
    Information about the nature of the modification or exchange transaction (see paragraph 815-40-35-15)
  2. b
    The amount of the effect of the modification or exchange (see paragraph 815-40-35-16)
  3. c
    The manner in which the effect of the modification or exchange has been recognized (see paragraph 815-40-35-17).
","snippet":"For a freestanding equity-classified written call option modified or exchanged during any of the periods presented and for which an entity has recognized the effect in accordance with paragraph 815-40-35-17, an entity sh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:059f453f34be91e1226a3dfd758b1144f4626b1840984d1f067050b68bcdb321","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2319ed93a64346ebfb2330c20d0d7a1e77ff1d283a9ab80224efa50ab12015b0","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:319aedb64b1d8287d0a0c38c51961a52ded5ce9ea5ae37f1f42eb2c5146737c6","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:319aedb64b1d8287d0a0c38c51961a52ded5ce9ea5ae37f1f42eb2c5146737c6","downloaded_from":"2026-09-10T01:39:11.732Z","last_downloaded_at":"2026-09-10T01:39:11.732Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480237","source_sha256":"3a71bc3114a790546cf5d8f287aaed3d4f77b26059ab3bb8bcb05f2302f536ad"}}