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Course Level :Basic
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Credits :1
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Pre-requisites :None
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Advance Preparation :None
What is a guarantee?
Guarantees are often included within certain purchase agreements, sales agreements, commercial agreements, and many other types of agreements.
Oddly enough, while the FASB has a dedicated ASC Topic for the accounting and reporting requirements related to guarantees, the FASB does not offer a concrete definition of the term guarantee. This is likely because there are so many different types of guarantees.
Within the context of ASC Topic 460, there are three primary types of guarantees:
ASC 460, Guarantees contains guidance on a guarantor’s accounting and disclosure requirements for particular guarantee obligations. It requires a reporting entity that makes certain types of guarantees to recognize a liability generally measured initially at fair value and to make several specified disclosures. For other types of guarantees, the guarantor is exempt from the initial recognition provisions but is still subject to the disclosure requirements.
Both financial and non-financial contracts can be guaranteed within the scope of ASC 460. The scope does not include guarantees that the guarantor should record in equity. Certain guarantees that are within the scope of ASC 460 also fall under the scope of the current expected credit loss (CECL) model in ASC 326, and thus must be assessed for expected credit losses.
This CPE webinar on Accounting provides an overview of the accounting, reporting, and disclosure requirements related to guarantees as prescribed by ASC Topic 460.
MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478
MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.NASBARegistry.org.
Advisor, HP
Kelen is a recognized author and reviewer of CPE courses and has authored over 150 courses (370+ CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as a Principal in Accounting Policy with HP in Doha, Qatar. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.
66 Ratings
JM
Dec 10th, 2023
Learned about a subject that I have not had a lot of experience in and it's nice to be able to learn more about guarantees as it might come up in a client engagement in the future.
JW
Mar 24th, 2024
very concise and informative
DT
Feb 25th, 2023
Well presented
PS
May 24th, 2023
well done
JB
Jul 27th, 2023
The course material was presented in a clear and consise manner with multiple examples. This made the material easy to grasp even though I do not deal with accounting for Guarantees on a daily basis.
