2.1 Overview of guarantee and joint and several liability

A guarantor may guarantee financial or operational performance for a number of reasons. Common types of guarantees include financial ... Chapter2:Guaranteesandjointandseveralobligations Prev Chapter2:Guaranteesandjointandseveralobligations 2.2AccountingforaguaranteeunderASC460 Next 2.2AccountingforaguaranteeunderASC460 Addtofavorites Viewpoint FavoritedContent 2.1Overview ofguaranteeandjointandseveralliability Publicationdate:31Dec2021    usFinancingguide2.1 Aguarantormayguaranteefinancialoroperationalperformanceforanumberofreasons.Commontypesofguaranteesincludefinancialguarantees,performanceguarantees,indemnifications,andindirectguaranteesofanotherentity’sdebt.Guaranteesareoftenembeddedinpurchaseorsalesagreements,servicecontracts,jointventureagreements,orothercommercialarrangements.Ajointandseveralliabilityisanobligationofseveralpartiesthatisenforceable,forthefullamountoftheobligation,againstanyoneoftheparties.Forexample,inajointandseveraldebtobligation,thelendercandemandpaymentinaccordancewiththetermsofthedebtforthetotalamountoftheobligationfromanyone,oracombination,oftheobligors.Reportingentitiesundercommoncontrolmaybejointlyandseverallyliableforanobligation;butsomayunrelatedreportingentities.Thischapterdiscussestheaccountingconsiderationsassociatedwithguaranteesfromtheperspectiveoftheguarantor.Italsodiscussestheaccountingconsiderationsforjointandseveralliabilityarrangements.Thischapterdoesnotdiscussdisclosurerequirements.SeeFSP23forinformationrelatedtodisclosures. 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Tableofcontents 2.1Overview ofguaranteeandjointandseveralliability PreparingTOC Linkcopied Relatedcontent 1 of  usFinancialstatementpresentationguide23 Gotocontent Chapter23:Commitments,contingencies,andguarantees 30Nov2021 Examples 1 of  Effectivedate 1 of  Frequentlyaskedquestions 1 of  Consultant'sinsights 1 of  TABLEOFCONTENTS TOOLS+MORE Tableofcontents PreparingTOC Tools+more Relatedcontent 1 of  usFinancialstatementpresentationguide23 Gotocontent Chapter23:Commitments,contingencies,andguarantees 30Nov2021 Examples 1 of  Effectivedate 1 of  Frequentlyaskedquestions 1 of  Consultant'sinsights 1 of  Pleaseensure thatyouselect PrintBackground(colorsandimages) whenprinting. CONTINUE Don’tshowthismessageagain. Searchwithinthissection Selectasectionbelowandenteryoursearchterm,ortosearchallclick Financingtransactions Submit Thiscontentiscopyrightprotected.Itisforyourownuseonly-donotredistribute. ThesematerialsweredownloadedfromPwC'sViewpoint(viewpoint.pwc.com)underlicense. 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