{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/405/40/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"405","topic_title":"Liabilities","subtopic":"405-40","subtopic_title":"Obligations Resulting from Joint and Several Liability Arrangements","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"405-40-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_53B53408-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity shall recognize obligations resulting from joint and several liability arrangements when the arrangement is included in the scope of this Subtopic. In some circumstances, the arrangement is included in the scope of this Subtopic at the inception of the arrangement (for example, a debt arrangement); in other circumstances, the arrangement is included in the scope of this Subtopic after the inception of the arrangement (for example, when the total amount of the obligation becomes fixed, consistent with paragraph <a href=\"/asc/405/40/#405-40-15-1\" class=\"xref\">405-40-15-1</a>). </span></span></div></div>","snippet":"An entity shall recognize obligations resulting from joint and several liability arrangements when the arrangement is included in the scope of this Subtopic. In some circumstances, the arrangement is included in the scop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:973760e90aecca74dec623ba11e2e62c8633777a9347242f3a27afb35c1ca602","downloaded_from":"2026-09-10T00:14:59.218Z","last_downloaded_at":"2026-09-10T00:14:59.218Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477116","source_sha256":"abe2bb3ce87c8599fe81197091d14860a4e02bdcabdda16a8c26ab5bf49a5ef9"}},{"citation":"405-40-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_53B5358C-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The corresponding entry or entries shall depend on facts and circumstances of the obligation. Examples of corresponding entries include the following:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_53B536D9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cash for proceeds from a debt arrangement</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_53B53814-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An expense for a legal settlement</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_53B53942-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A receivable (that is assessed for impairment) for a contractual right</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_53B53A74-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An equity transaction with an entity under common control. </span></span></div></li></ol></div></div>","snippet":"The corresponding entry or entries shall depend on facts and circumstances of the obligation. Examples of corresponding entries include the following:\n(a) Cash for proceeds from a debt arrangement\n(b) An expense for a le…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:43837b7d03e3358d1246cfdfabb0c651f67986c939f77180c76d044061362606","downloaded_from":"2026-09-10T00:14:59.218Z","last_downloaded_at":"2026-09-10T00:14:59.218Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477116","source_sha256":"abe2bb3ce87c8599fe81197091d14860a4e02bdcabdda16a8c26ab5bf49a5ef9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0febd8fc64ae5bdf351a279f8f81ba579bf97f6fcb1062e22c681403266c7a1c","downloaded_from":"2026-09-10T00:14:59.218Z","last_downloaded_at":"2026-09-10T00:14:59.218Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477116","source_sha256":"abe2bb3ce87c8599fe81197091d14860a4e02bdcabdda16a8c26ab5bf49a5ef9"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecb72b5a25001777c2fbd507bbd11690fe756feb0d1683f6bd0526cacf52c326","downloaded_from":"2026-09-10T00:14:59.218Z","last_downloaded_at":"2026-09-10T00:14:59.218Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477116","source_sha256":"abe2bb3ce87c8599fe81197091d14860a4e02bdcabdda16a8c26ab5bf49a5ef9"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ecb72b5a25001777c2fbd507bbd11690fe756feb0d1683f6bd0526cacf52c326","downloaded_from":"2026-09-10T00:14:59.218Z","last_downloaded_at":"2026-09-10T00:14:59.218Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477116","source_sha256":"abe2bb3ce87c8599fe81197091d14860a4e02bdcabdda16a8c26ab5bf49a5ef9"}}