# ASC 405-40-30: Liabilities — Obligations Resulting from Joint and Several Liability Arrangements — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/40/#30-initial-measurement)

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## ASC 405-40-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/405/40/#30-initial-measurement)

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##### [405-40-30-1](https://asc.understandingaccounting.org/asc/405/40/#405-40-30-1)

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Obligations resulting from joint and several liability arrangements included in the scope of this Subtopic initially shall be measured as the sum of the following:

1.  a
    
    The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors.
    
2.  b
    
    Any additional amount the reporting entity expects to pay on behalf of its co-obligors. If some amount within a range of the additional amount the reporting entity expects to pay is a better estimate than any other amount within the range, that amount shall be the additional amount included in the measurement of the obligation. If no amount within the range is a better estimate than any other amount, then the minimum amount in the range shall be the additional amount included in the measurement of the obligation.

##### [405-40-30-2](https://asc.understandingaccounting.org/asc/405/40/#405-40-30-2)

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The corresponding entry or entries shall depend on the facts and circumstances of the obligation.