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ASU 2020-06 — convertible instruments and contracts in an entity's own equity

FASB amendment simplifying convertible instrument accounting, own equity scope, and related diluted EPS calculations and disclosures.

Authority and currency

About this authority

Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
ASU 2020-06
Relevant parts
Summary; amendments to Topics 260 and 505 and Subtopics 470-20 and 815-40
Currency
current · checked Aug 8, 2026

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The current EPS lane applies the if-converted method to convertible instruments within scope and preserves the related numerator effects, conversion shares, dates, and antidilution. It does not reuse a superseded cash-conversion or beneficial-conversion shortcut from an older exercise.