# ASC 825-20-05: Financial Instruments — Registration Payment Arrangements — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/825/20/#05-overview-and-background)

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): 2026-09-10T01:44:49.567Z to 2026-09-10T01:44:49.567Z

Record version: sha256:1c5f719a4db909186ff5ce3b173603d78dec3fb3fa41b9c6a29bf83cd1c32c91

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 825-20-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/825/20/#05-overview-and-background)

SEC content: no

##### [825-20-05-1](https://asc.understandingaccounting.org/asc/825/20/#825-20-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:44:49.567Z to 2026-09-10T01:44:49.567Z

Record version: sha256:bccfe87036db5050a3ce7d4de9dca0b6247912dd73307a2bf15de5ac97a9adc6

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity may issue financial instruments (for example, equity shares, warrants, or debt instruments) that are subject to a [registration payment arrangement](https://asc.understandingaccounting.org/glossary/r/#registration-payment-arrangement "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)."). This Subtopic provides guidance related to such arrangements.