# ASC 405-40-15: Liabilities — Obligations Resulting from Joint and Several Liability Arrangements — 15 Scope and Scope Exceptions

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/40/#15-scope-and-scope-exceptions)

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## ASC 405-40-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/405/40/#15-scope-and-scope-exceptions)

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#### Overall Guidance

##### [405-40-15-1](https://asc.understandingaccounting.org/asc/405/40/#405-40-15-1)

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The guidance in this Subtopic applies to obligations resulting from joint and several liability arrangements for which the total amount under the arrangement is fixed at the reporting date, except for obligations otherwise accounted for under the following Topics:

1.  a
    
    Asset Retirement and Environmental Obligations, see Topic 410
    
2.  b
    
    Contingencies, see Topic 450
    
3.  c
    
    Guarantees, see Topic 460
    
4.  d
    
    Compensation—Retirement Benefits, see Topic 715
    
5.  e
    
    Income Taxes, see Topic 740.
    

For the total amount of an obligation under an arrangement to be considered fixed at the reporting date there can be no measurement uncertainty at the reporting date relating to the total amount of the obligation within the scope of this Subtopic. However, the total amount of the obligation may change subsequently because of factors that are unrelated to measurement uncertainty. For example, the amount may be fixed at the reporting date but change in future periods because an additional amount was borrowed under a line of credit for which an entity is jointly and severally liable or because the interest rate on a joint and several liability arrangement changed.

##### [405-40-15-2](https://asc.understandingaccounting.org/asc/405/40/#405-40-15-2)

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Although the total amount of the obligation of the entity and its co-obligors must be fixed at the reporting date to be within the scope of this Subtopic, the amount that the entity expects to pay on behalf of its co-obligors may be uncertain at the reporting date.