{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/440/10/#50-disclosure","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":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"440-10-50-1","para":"50-1","html":"
Notwithstanding more explicit disclosures required elsewhere in this Codification, all of the following situations shall be disclosed in financial statements:
  1. a
    Unused letters of credit
  2. b
    Leases (see Section 842-20-50)
  3. c
    Assets pledged as security for loans
  4. d
    Pension plans (see Section 715-20-50)
  5. e
    The existence of cumulative preferred stock dividends in arrears
  6. f
    Commitments, including:
    1. 1
      A commitment for plant acquisition
    2. 2
      An obligation to reduce debts
    3. 3
      An obligation to maintain working capital
    4. 4
      An obligation to restrict dividends.
Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance:
105-10-65-7 Notwithstanding more explicit disclosures required elsewhere in this Codification, all of the following situations shall be disclosed in financial statements:
  1. a
    Unused letters of credit
  2. b
    Leases (see Section 842-20-50)
  3. c
    Assets mortgaged, pledged , or otherwise subject to lien; the approximate amounts of those assets; and the related obligations collateralized
  4. d
    Pension plans (see Section 715-20-50)
  5. e
    The existence of cumulative preferred stock dividends in arrears
  6. f
    Commitments, including:
    1. 1
      A commitment for plant acquisition
    2. 2
      An obligation to reduce debts
    3. 3
      An obligation to maintain working capital
    4. 4
      An obligation to restrict dividends.
","snippet":"Notwithstanding more explicit disclosures required elsewhere in this Codification, all of the following situations shall be disclosed in financial statements:\n(a) Unused letters of credit\n(b) Leases (see Section 842-20-5…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b3848093a2f25598caf1385f4723c2f9891cde6a98c14b849a965708cc0fb19","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f70a3deec7833036cb979159842772f978c244f31e1f704611faede15fe02e09","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"block":"Unconditional Purchase Obligations","heading":null,"paragraphs":[{"citation":"440-10-50-2","para":"50-2","html":"
An unconditional purchase obligation that has all of the following characteristics shall be disclosed in accordance with paragraph 440-10-50-4 (if not recorded on the purchaser's balance sheet) or in accordance with paragraph 440-10-50-6 (if recorded on the purchaser's balance sheet):
  1. a
    It is noncancelable, or cancelable only in any of the following circumstances:
    1. 1
      Upon the occurrence of some remote contingency
    2. 2
      With the permission of the other party
    3. 3
      If a replacement agreement is signed between the same parties
    4. 4
      Upon payment of a penalty in an amount such that continuation of the agreement appears reasonably assured.
  2. b
    It was negotiated as part of arranging financing for the facilities that will provide the contracted goods or services or for costs related to those goods or services (for example, carrying costs for contracted goods). A purchaser is not required to investigate whether a supplier used an unconditional purchase obligation to help secure financing, if the purchaser would otherwise be unaware of that fact.
  3. c
    It has a remaining term in excess of one year
","snippet":"An unconditional purchase obligation that has all of the following characteristics shall be disclosed in accordance with paragraph 440-10-50-4 (if not recorded on the purchaser's balance sheet) or in accordance with para…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4123aadd8aaeea1b242b32a03f04b301b1755f398111b387183ef2abdfe5317","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"citation":"440-10-50-3","para":"50-3","html":"
Future lease payments under leases that meet the conditions in paragraph 440-10-50-2 need not be disclosed in accordance with paragraph 440-10-50-4 or paragraph 440-10-50-6 if those future lease payments are disclosed in accordance with Section 842-20-50.
","snippet":"Future lease payments under leases that meet the conditions in paragraph 440-10-50-2 need not be disclosed in accordance with paragraph 440-10-50-4 or paragraph 440-10-50-6 if those future lease payments are disclosed in…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ade0ade413837c45a3cd26be8384d48b6b8fcf3ad4b52a85d940f39c429988d","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b59d3f539e916e8cfd151803e2f4b3b2c117e46f7dc2e7af7849eac289d6bcab","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"block":"Unconditional Purchase Obligations","heading":"Unrecognized Commitments","paragraphs":[{"citation":"440-10-50-4","para":"50-4","html":"
A purchaser shall disclose unconditional purchase obligations that meet the criteria of paragraph 440-10-50-2 and that have not been recognized on its balance sheet. Disclosures of similar or related unconditional purchase obligations may be combined. The disclosures shall include all of the following:
  1. a
    The nature and term of the obligation(s)
  2. b
    The amount of the fixed and determinable portion of the obligation(s) as of the date of the latest balance sheet presented, in the aggregate and, if determinable, for each of the five succeeding fiscal years
  3. c
    The nature of any variable components of the obligation(s)
  4. d
    The amounts purchased under the obligation(s) (for example, the take-or-pay or throughput contract) for each period for which an income statement is presented.
The preceding disclosures may be omitted only if the aggregate commitment for all such obligations not disclosed is immaterial.
","snippet":"A purchaser shall disclose unconditional purchase obligations that meet the criteria of paragraph 440-10-50-2 and that have not been recognized on its balance sheet. Disclosures of similar or related unconditional purcha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4ce6d9749049bc57801f6fe6dc3169f5281a2bc389ce1132aba955faa6e7a67","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"citation":"440-10-50-5","para":"50-5","html":"
Disclosure of the amount of imputed interest necessary to reduce the unconditional purchase obligation(s) to present value is encouraged but not required. The discount rate shall be the effective initial interest rate of the borrowings that financed the facility (or facilities) that will provide the contracted goods or services, if known by the purchaser. If not, the discount rate shall be the purchaser's incremental borrowing rate at the date the obligation is entered into.
","snippet":"Disclosure of the amount of imputed interest necessary to reduce the unconditional purchase obligation(s) to present value is encouraged but not required. The discount rate shall be the effective initial interest rate of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e20fd29de1fe87805f5d8117ac440270d9d0e233b19936034bde41e867290bc","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58f0348787e33b7f43431219a5c4b0aa13048e7a75c771b8801ef05d36afbff5","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"block":"Unconditional Purchase Obligations","heading":"Recognized Commitments","paragraphs":[{"citation":"440-10-50-6","para":"50-6","html":"
A purchaser shall disclose for each of the five years following the date of the latest balance sheet presented the aggregate amount of payments for unconditional purchase obligations that meet the criteria of paragraph 440-10-50-2 and that have been recognized on the purchaser's balance sheet.
","snippet":"A purchaser shall disclose for each of the five years following the date of the latest balance sheet presented the aggregate amount of payments for unconditional purchase obligations that meet the criteria of paragraph 4…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:737e4031ea2f45224e6260a2947a3600e5010a2aadda4172b643bb63462fe132","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},{"citation":"440-10-50-7","para":"50-7","html":"
Paragraph 815-10-50-6 explains that, if an unconditional purchase obligation is subject to the requirements of both this Subtopic and Subtopic 815-10, the entity shall comply with the disclosure requirements of each Subtopic including paragraph 440-10-50-4.
","snippet":"Paragraph 815-10-50-6 explains that, if an unconditional purchase obligation is subject to the requirements of both this Subtopic and Subtopic 815-10, the entity shall comply with the disclosure requirements of each Subt…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48c2c7f11a50369ef41461dddf5ba9f6a23a98fad7011659004e9bd5cb9fb1ae","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c33210dc6c0c4c38bda08d5837162c0b6359a76c0152b44277c84f6f1b54ed85","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30280e349dba6120602ac4d4a7c89cdefb4ee4fc1acab117fdcd84f644b52c3d","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:30280e349dba6120602ac4d4a7c89cdefb4ee4fc1acab117fdcd84f644b52c3d","downloaded_from":"2026-09-10T00:25:28.790Z","last_downloaded_at":"2026-09-10T00:25:28.790Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482648","source_sha256":"c6d67dbcf5ac493eeaf8e862c19ab9469d31cdf7915040cc4f67bbb2d6a4becf"}}