The company CONSIDERED but did not USE 480 for the determination. Furthermore the company considered ASC 815. It was determined that by using ASC 815-10-15-83 they could define the derivative. This is what is used to define the Auctus loan as a derivative instrument. A derivative instrument is a financial instrument or other contract with all of the following characteristics: Underlying, notional amount, payment provision.Mar 31, 2024
You didn't even KNOW the AUCTUS loan was a DERIVATIVE. Now you want to define it.LOLOLOL
"Too much gray in defining as derivative." as defined by ASC 480. All that BS. LOLOLOL That's why ASC815-10-15-83 was used to DEFINE the derivative after meeting the 3 characteristics needed to make the Auctus loan a derivative to start with. Underlying, notional amount, payment provision.
Underlying= 5.4% obligation
Notional Amount= 3,342,998=$330,501
Payment Provision= $330,501= fair value adjustment to the obligation for the year ended December 31, 2022.
"The Company considered ASC 480-10, Distinguishing Liabilities from Equity, and determined the financing arrangement with Xeriant through the Joint Venture is liability classified since the obligation must be settle by issuing a variable number of the Company’s equity shares. Furthermore, the Company considered ASC 815, Derivatives and Hedging, and determined the obligation should be recorded at fair value and marked to market periodically. Accordingly, the Company recorded a $330,501 fair value adjustment to the obligation for the year ended December 31, 2022."
What three characteristics must be met to meet the definition of a derivative under ASC 815?
ASC 815-10-15-83 defines a derivative instrument. A derivative instrument is a financial instrument or other contract with all of the following characteristics: Underlying, notional amount, payment provision.Mar 31, 2024
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