# ASC 440-10-50: Commitments — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/440/10/#50-disclosure) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:30280e349dba6120602ac4d4a7c89cdefb4ee4fc1acab117fdcd84f644b52c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 440-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/440/10/#50-disclosure) SEC content: no ##### [440-10-50-1](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:1b3848093a2f25598caf1385f4723c2f9891cde6a98c14b849a965708cc0fb19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/105/10/#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. ### Unconditional Purchase Obligations ##### [440-10-50-2](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:f4123aadd8aaeea1b242b32a03f04b301b1755f398111b387183ef2abdfe5317 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [unconditional purchase obligation](https://asc.understandingaccounting.org/glossary/u/#unconditional-purchase-obligation "An obligation to transfer funds in the future for fixed or minimum amounts or quantities of goods or services at fixed or minimum prices (for example, as in take-or-pay contracts or throughput contracts).") that has all of the following characteristics shall be disclosed in accordance with paragraph [440-10-50-4](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-4) (if not recorded on the purchaser's balance sheet) or in accordance with paragraph [440-10-50-6](https://asc.understandingaccounting.org/asc/440/10/#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 ##### [440-10-50-3](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:2ade0ade413837c45a3cd26be8384d48b6b8fcf3ad4b52a85d940f39c429988d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Future [lease payments](https://asc.understandingaccounting.org/glossary/l/#lease-payments "See paragraph 842-10-30-5 for what constitutes lease payments from the perspective of a lessee and a lessor.") under [leases](https://asc.understandingaccounting.org/glossary/l/#lease "A contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration.") that meet the conditions in paragraph [440-10-50-2](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-2) need not be disclosed in accordance with paragraph [440-10-50-4](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-4) or paragraph [440-10-50-6](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-6) if those future lease payments are disclosed in accordance with Section 842-20-50. #### Unrecognized Commitments ##### [440-10-50-4](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:f4ce6d9749049bc57801f6fe6dc3169f5281a2bc389ce1132aba955faa6e7a67 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A purchaser shall disclose unconditional purchase obligations that meet the criteria of paragraph [440-10-50-2](https://asc.understandingaccounting.org/asc/440/10/#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](https://asc.understandingaccounting.org/glossary/t/#take-or-pay-contract "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.") or [throughput contract](https://asc.understandingaccounting.org/glossary/t/#throughput-contract "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.")) 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. ##### [440-10-50-5](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:2e20fd29de1fe87805f5d8117ac440270d9d0e233b19936034bde41e867290bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/p/#purchaser-s-incremental-borrowing-rate "The rate that, at the inception of an unconditional purchase obligation, the purchaser would have incurred to borrow over a similar term the funds necessary to discharge the obligation.") at the date the obligation is entered into. #### Recognized Commitments ##### [440-10-50-6](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:737e4031ea2f45224e6260a2947a3600e5010a2aadda4172b643bb63462fe132 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-2) and that have been recognized on the purchaser's balance sheet. ##### [440-10-50-7](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:25:28.790Z to 2026-09-10T00:25:28.790Z Record version: sha256:48c2c7f11a50369ef41461dddf5ba9f6a23a98fad7011659004e9bd5cb9fb1ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [815-10-50-6](https://asc.understandingaccounting.org/asc/815/10/#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](https://asc.understandingaccounting.org/asc/440/10/#440-10-50-4).