This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Roadmap: Issuer's Accounting for Debt (July 2021)

Published on: 29 Jul 2021

This Roadmap provides an overview of the FASB’s authoritative guidance on the issuer’s accounting for debt arrangements (including convertible debt) as well as our insights into and interpretations of how to apply that guidance in practice.

Determining the appropriate accounting for debt arrangements can be time-consuming and complex. Terms that are significant to the accounting analysis may be buried deep within a contract’s fine print. To properly apply the numerous rules in U.S. GAAP, an issuer needs to closely analyze an instrument’s terms and conditions and the related facts and circumstances. The outcome of the analysis could significantly affect the classification, measurement, and earnings impact of the debt arrangement and associated financial statement ratios. This Roadmap is intended to help issuers navigate the guidance and arrive at appropriate financial reporting conclusions.

The 2021 edition includes updated and expanded guidance (see Appendix E for details) as well as On the Radar, a new section that briefly summarizes emerging issues and trends related to the accounting and financial reporting topics addressed in the Roadmap. In addition, it is assumed in the Roadmap that the amendments made by ASU 2020-06 related to an issuer’s accounting for convertible debt have been adopted. For a discussion of the issuer’s accounting for convertible debt before the adoption of those amendments, see Deloitte’s Roadmap Convertible Debt (Before Adoption of ASU 2020-06).


Related Topics

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.