Wiley GAAP 2018, 16th Edition

35ASC 460 Guarantees

1. Perspective and Issues
   1. Subtopic
   2. Scope and Scope Exceptions
      1. Product Warranties
   3. Overview
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Guarantees
      1. Initial Recognition
         1. Example of Estimating the Fair Value of a Guarantee Using CON 7 when Recognition of a Loss Contingency Under ASC 450 Would not be Otherwise Required
         2. Example of Estimating the Fair Value of a Guarantee Using CON 7 when Recognition of a Loss Contingency Under ASC 450 is also Required
      2. Subsequent Measurement
      3. Fees for Guaranteeing a Loan
      4. Impact of ASC 460 on Revenue Recognition on Sales with a Guaranteed Minimum Resale Value
      5. Disclosure Requirements
   2. Product Warranties
      1. Example of Product Warranty Expense
   3. Other Sources

Perspective and Issues

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:

• General, which discusses the guarantor's recognition and disclosure of a liability at the inception of a guarantee
• Product Warranties.

Additional sources of guidance are listed in the “Other Sources” section at the end of this chapter.

Scope and Scope Exceptions

ASC 460 applies to all entities. ASC 460 applies to guarantee contracts that contingently require the guarantor to make payments (either in cash, financial instruments, shares of its stock, other assets, or in services) to the guaranteed party based on any of the following ...