A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
ASC 440, Commitments, contains only one subtopic: ASC 440‐10, Overall. ASC 440‐10 provides general guidance on financial accounting and reporting for certain commitments. The Subtopic has two Subsections: general and unconditional purchase obligations. The General Subsection provides guidance for: unused letters of credit, preferred stock dividends in arrears, commitments such as those for plant acquisitions, and obligations to reduce debts, maintain working capital, or restrict dividends. The Unconditional Purchase Obligation subsection provides guidance for unconditional purchase obligations, such as throughput and take‐or‐pay contracts. ASC 440 applies to all transactions. However, for guidance on product financing arrangements, the preparer should look to ASC 470‐40‐15. All significant contractual commitments must be disclosed in the notes to the financial statements. Throughput and take‐or‐pay contracts are sometimes used to help a supplier pay for new facilities, machines, or other expenditures.
ASC 440, Commitments, contains only one subtopic: ASC 440‐10, Overall. ASC 440‐10 provides general guidance on financial accounting and reporting for certain commitments. The Subtopic has two Subsections: general and unconditional purchase obligations. The General Subsection provides guidance for: unused letters of credit, preferred stock dividends in arrears, commitments such as those for plant acquisitions, and obligations to reduce debts, maintain working capital, or restrict dividends. The Unconditional Purchase Obligation subsection provides guidance for unconditional purchase obligations, such as throughput and take‐or‐pay contracts. ASC 440 applies to all transactions. However, for guidance on product financing arrangements, the preparer should look to ASC 470‐40‐15. All significant contractual commitments must be disclosed in the notes to the financial statements. Throughput and take‐or‐pay contracts are sometimes used to help a supplier pay for new facilities, machines, or other expenditures.
ASC 440 Commitments
Flood, Joanne M (author)
2016-05-12
4 pages
Article/Chapter (Book)
Electronic Resource
English
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