Program Description: The objective of the course is to enable participants to comprehend the accounting for distinguishing liabilities from equity, with a focus on instruments that have characteristics of both. This program utilizes practical examples and case studies from different industries to demonstrate the classification and measurement of these complex financial instruments. It addresses the latest updates, implementation challenges, and disclosure requirements, ensuring participants can confidently apply ASC 480— Equities v/s Liabilities principles in their professional roles. The course also covers in-depth topics such as the classification of mandatorily redeemable financial instruments, obligations to repurchase an entity's own equity shares, and the recognition and presentation of these instruments in financial statements.
Course Coverage:
- Overview of ASC 480
- Summary of the 5 Steps model
- Identifying all freestanding financial instruments
- Allocation of Proceeds
Learning Objectives:
(1) Recognize the principles that govern the classification of certain financial instruments as either liabilities or equity.
(2) Distinguish between various instruments like mandatorily redeemable financial instruments, obligations to repurchase an issuer's equity shares, and certain instruments that may be settled in the issuer's equity shares.
(3) Apply the rules to classify instruments, such as those that obligate the issuer to transfer cash or other assets, and those that give the holder the right to demand cash or other assets.
(4) Understand how to account for the classified instruments on the financial statements, including the appropriate recognition and measurement for those classified as liabilities.
(5) Comprehend the criteria used to determine if an instrument, regardless of its legal form, should be classified as a liability. This includes understanding the conditions under which an instrument is considered a mandatorily redeemable financial instrument.
Passing Score: 70%
Validity of the course: August 2025 – October 2030
Available from: August 2025
Available Discount: Group discounts of 10% available for 5 or more participation
Last Updated: August 2025
Program Registration: To register for the program, please visit www.eyvirtualacademy.com and click on Add to Cart to register for the program.
Program Access: The participants will have access to the program for a period of 1 year starting from the date of enrolment.
Keywords: Liability vs. Equity, Classification, Financial Instruments, Temporary Equity, Hybrid Instruments, Mandatorily Redeemable Financial Instruments, Redeemable Stock, Obligations to Repurchase Shares, Put Options, Call Options, Embedded Derivatives, Disclosure Requirements, Financial Statement Presentation, Notes to Financial Statements, US GAAP, Accounting, Online Learning, CPA, CPE, Certification.
Special Notice:
- Ernst & Young Associates LLP-India is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
- CPE credits will be awarded upon successful completion of the content and passing the exam on securing 70% or above.
- Each Participant has the flexibility to take unlimited attempts to clear the assessment.
- Contact Ernst & Young Associates LLP-India (askeyexpert@in.ey.com) for assistance.
Complaint Policy: For any content related query, you may write to askeyexpert@in.ey.com . For any complaints you may connect with chandra.kargeti@in.ey.com. Escalation: neha.tuteja@in.ey.com
Refund Policy: We do not offer refunds once the participants have accessed any course materials. Course material includes videos, content, quizzes and assessments.
