Wiley GAAP: Financial Statement Disclosure Manual

32ASC 460 GUARANTEES

1. Authoritative Literature
   1. Overview
   2. Subtopic
   3. Scope and Scope Exceptions
      1. General
      2. Product Warranties
      3. Guarantees
      4. Initial Recognition
      5. Subsequent Measurement
      6. Product Warranties
2. Presentation and Disclosure Requirements
   1. 1. Presentation
      2. Disclosure
3. Presentation and Disclosure Examples
   1. Example 32.1: Accounting Policy—Warranties, Claims Are Immaterial
   2. Example 32.2: Product Warranties—No Disclosure because Amounts Are Immaterial
   3. Example 32.3: Guarantees
   4. Example 32.4: Product Warranty Costs, Accrual Policy, and Schedule with Changes
   5. Example 32.5: Guarantees and Indemnifications
   6. Example 32.6: Schedule of Maximum Potential Amount of Future Payments for Guarantees
   7. Example 32.7: Letters of Credit

AUTHORITATIVE LITERATURE

Overview

Guarantees embody two separate obligations:

1. The contingent obligation to make future payments under the guarantee in the event of nonperformance by the party whose obligation is guaranteed, and
2. An obligation to be ready to perform, referred to as a standby obligation, during the period that the guarantee is in effect.

As a result of this bifurcation of the obligation, many guarantees are now required to be recognized as liabilities on the statement of financial position.

Subtopic

ASC 460, Guarantees, consists of one Subtopic:

• ASC 460‐10, Overall, which provides requirements to be met by a guarantor for certain guarantees issued and outstanding.

ASC 460‐10 has two Subsections:

1. General, which discusses the guarantor's recognition ...