{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/440/10/#05-overview-and-background","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":"440","topic_title":"Commitments","subtopic":"440-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"440-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Commitments Topic establishes standards of financial accounting and reporting for certain commitments. This Topic contains only the Overall Subtopic. The guidance in this Subtopic is presented in the following two Subsections:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Unconditional Purchase Obligations.</div></li></ol></div></div>","snippet":"The Commitments Topic establishes standards of financial accounting and reporting for certain commitments. This Topic contains only the Overall Subtopic. The guidance in this Subtopic is presented in the following two Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:57e2534fdb7f818511dfd1285454c8e12fdbfd0b72bb67b0445eeee2fe170a4c","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}},{"citation":"440-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The General Subsections provide guidance for unused letters of credit; preferred stock dividends in arrears; commitments such as those for plant acquisition; and obligations to reduce debts, maintain working capital, or restrict dividends.</div></div>","snippet":"The General Subsections provide guidance for unused letters of credit; preferred stock dividends in arrears; commitments such as those for plant acquisition; and obligations to reduce debts, maintain working capital, or …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8ef0c6f56140e96643c06ad4cbd2c87086bb3aefdc297ed762b4e23c540de556","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}},{"citation":"440-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Topic provides general guidance for commitments, while other Topics include guidance for commitments that relate specifically to those Topics. In addition, commitments that are unique to a particular industry are discussed in the Topic for that industry, generally under the Commitments Subtopic.</div></div>","snippet":"This Topic provides general guidance for commitments, while other Topics include guidance for commitments that relate specifically to those Topics. In addition, commitments that are unique to a particular industry are di…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ebe24d1259a4c45b7da9b315218c30d329e737b27feaa30debfd13aca8728ada","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7fec5643ef9448ec4a53c8249309523add00f59d7173d073a71231fcd2bd588a","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}},{"block":"Unconditional Purchase Obligations","heading":null,"paragraphs":[{"citation":"440-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Unconditional Purchase Obligations Subsections provide guidance for unconditional purchase obligations, including <a href=\"/glossary/t/#take-or-pay-contract\" class=\"term\" title=\"An agreement between a purchaser and a seller that provides for the purchaser to pay specified amounts periodically in return for products or services. The purchaser must make specified minimum payments even if it does not take delivery of the contracted products or services.\"><span>take-or-pay</span></a> and <a href=\"/glossary/t/#throughput-contract\" class=\"term\" title=\"An agreement between a shipper (processor) and the owner of a transportation facility (such as an oil or natural gas pipeline or a ship) or a manufacturing facility that provides for the shipper (processor) to pay specified amounts periodically in return for the transportation (processing) of a product. The shipper (processor) is obligated to provide specified minimum quantities to be transported (processed) in each period and is required to make cash payments even if it does not provide the contracted quantities.\"><span>throughput contracts</span></a>.</div></div>","snippet":"The Unconditional Purchase Obligations Subsections provide guidance for unconditional purchase obligations, including take-or-pay and throughput contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf12655c09781c560b3a28a23c5dcd9b34a6176ed6359edc1e15004d5f696897","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e89cdc07f395ff19644405258371b1a528a6c40aa663a540cedf76900127021b","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:979accb3da10d73c068604dc1a980f5a4fa910be612eca66dde837506f3bdda0","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:979accb3da10d73c068604dc1a980f5a4fa910be612eca66dde837506f3bdda0","downloaded_from":"2026-09-10T00:25:18.964Z","last_downloaded_at":"2026-09-10T00:25:18.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482543","source_sha256":"a20db8ba8407820130a70388e01a38eef3ba69ba29ecf0157088bdd1f5a22cce"}}