A Closer Look at Guarantees and Commitments under U.S. GAAP (Course Id 2635)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), particularly CPAs and accounting professionals seeking to understand U.S. GAAP requirements for guarantees and commitments.

• What is this course about or what problem does this course solve?
  The course focuses on accounting for guarantees and commitments under U.S. GAAP, clarifying recognition, measurement, and disclosure requirements to enhance financial reporting accuracy.

• How can the knowledge from this course be used?
  Learners can apply this knowledge to properly identify, record, and disclose guarantees and commitments in financial statements according to ASC Topics 460 and 440.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Understanding guarantees and commitments is essential for accurate financial reporting and compliance with U.S. GAAP, which is critical for audits and stakeholder transparency.

• When is this course relevant or timely?
  This course is especially relevant upon its 2025 release, aligning with current financial reporting standards and off-balance sheet arrangement scrutiny.

• How is a course like this consumed or used?
  The course is delivered as a QAS Self Study text-based module, requiring learners to read the material and complete a final exam with a passing score of 70% to earn 2.0 CPE credits.

This course provides an of the accounting for guarantees and commitments under U.S. GAAP. It begins with the principles for recognizing and disclosing guarantees and then expands to cover commitments, such as unused lines of credit, purchase obligations, and other off-balance sheet arrangements. Throughout, you'll gain practical insight into how these obligations affect financial reporting and the disclosure requirements for each. 

NASBA QAS - Text - NASBA Registry - 2635

Chapter 1
Guarantees

• Identify which arrangements fall within the scope of ASC Topic 460
• Recognize when a guarantee must be recorded as a liability
• Determine the appropriate initial and subsequent measurement of a guarantee
• Select the required disclosures for guarantees in the financial statements

Chapter 2
Commitments

• Identify the types of arrangements that may be considered commitments under ASC 440
• Recognize when a commitment should be disclosed in the financial statements
• Differentiate commitments from other obligations that create recognized assets or liabilities
• Determine when other accounting guidance may take precedence over ASC 440 for certain commitments

Chapter 1 - Guarantees

Chapter Overview

Learning Objectives

Introduction

Scope of ASC Topic 460

Measurement of Guarantees

Subsequent Measurement

Guarantee Disclosures

Conclusion

Review Questions

Chapter 2 - Commitments

Chapter Overview

Learning Objectives

Introduction

Common Examples of Commitments

Guarantees vs. Commitments

Scope of ASC 440

Recognition Requirements

Disclosure Requirements

Conclusion

Review Questions

Glossary of Key Terms