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Liabilities and equity — Targeted improvements

The objective of this project is to simplify the accounting for financial instruments with characteristics of liabilities and equity.

Meeting minutes

FASB Board discussions regarding this project are found in the following meeting minutes:
  • June 6, 2018 — The Board discussed issues relating to the accounting for instruments with characteristics of liabilities and equity.
  • May 10, 2017 — The Board discussed issues relating to the development of a final ASU addressing the accounting for certain financial instruments with down round features and replacing the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests with a scope exception.
  • April 19, 2017 — The Board discussed issues related to the development of a final ASU.
  • March 22, 2017 — The Board discussed feedback received during the development of a final ASU.
  • February 3, 2016 — The Board removed the simplification of EITF 00-19 from its agenda.
  • September 16, 2015 — The Board directed the staff to draft a proposed ASU for a vote by written ballot.
  • November 5, 2014 — The Board decided to add this projects to its technical agenda.
  • July 30, 2014 — The Board was presented with an update on information gathered during the research phase.
  • January 29, 2014 — The Board decided to research this topic.

Current status

The FASB staff will conduct additional research into convertible instruments and classification, disclosures, and earnings per share related to certain paths for determining whether a contract is indexed to an entity's own stock within the context of the derivative scope exception.

Project milestones

Date Developments Comments
January 29, 2014 Research on the project was initiated.
November 5, 2014 Project was added to the FASB's technical agenda.
December 7, 2016 Proposed ASU, I. Accounting for Certain Financial Instruments with Down Round Features and II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception, is issued. Comments due February 6, 2017.


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.