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This study source was downloaded by 100000801755870 from CourseHero.com on 04-09-2022 08:18:33 GMT -05:00
https://www.coursehero.com/file/27570905/Carrie-Powell-Week-2-Homeworkdocx/
Earnings Per Share
The Board decided to look into this project because of narrow issues that ended
up becoming known due to the complexity associated with applying GAAP for certain
financial instruments with characteristics of liabilities and equity. There are two parts to
this update. First part talks about the complexity of accounting for certain financial
instrument with down round features. These are features of certain equity-linked
instruments that result in the strike price being reduced on the basis of the pricing of
future equity offerings. The second part discusses how difficult it is to navigate Topic
480. This is the Distinguishing Liabilities from Equity.
Part 1 that relates to liability or equity classification of financial instruments will
affect all entities that issue financial instruments that include down round features. The
part that relates to the recognition, measurements, and earnings per share of certain
freestanding equity-classified financial instruments will affect entities that present
earnings per share in accordance with the guidance in Topic 260. Part 2 does not have
any accounting effect.This study source was downloaded by 100000801755870 from CourseHero.com on 04-09-2022 08:18:33 GMT -05:00
https://www.coursehero.com/file/27570905/Carrie-Powell-Week-2-Homeworkdocx/
Service Concession Arrangments
This update talks about the diversity that stakeholders have noticed about the
way an operating entity determines the customer of the operation services for
transactions that fall under the Service Concession Arrangements standard, Topic 853.
The service concession arrangement is an arrangement between a grantor and an
operating entity whereby the operating entity will operate the grantor’s infrastructure.
This update will affect any and all entities that use accounting by operating
entities for service concession arrangements that fall under Topic 853.This study source was downloaded by 100000801755870 from CourseHero.com on 04-09-2022 08:18:33 GMT -05:00
https://www.coursehero.com/file/27570905/Carrie-Powell-Week-2-Homeworkdocx/
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