- Definition
A forward contract issued by an entity that is indexed to, and potentially settled in an Entity's own stock. A freestanding contract is one that is entered into separate and apart from any of the Entity's other financial instruments or equity transactions, or if entered into in conjunction with some other transaction, is legally detachable and separately exercisable. This freestanding contract can also qualify as temporary equity or permanent equity. Includes disclosure on the forward rate and the number of shares to which the contract is indexed, the settlement date or dates of the contract, and the issuer's accounting for the contract. If the terms of the contract provide settlement alternatives, those settlement alternatives should be disclosed, including who controls the settlement alternatives, and the maximum number of shares that could be required to be issued, to net share settle the contract, if applicable. If a contract does not have a fixed or determinable maximum number of shares that could be required to be issued, the fact that a potentially infinite number of shares that may be required to be issued to settle the contract should be disclosed. Include also the contract's current fair value for each settlement alternative and how changes in the price of the issuer's equity instruments affect those settlement amounts.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 00-19
-Paragraph 50
+ Details
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