# ASC 460-10-05: Guarantees — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/460/10/#05-overview-and-background)

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## ASC 460-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/460/10/#05-overview-and-background)

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##### [460-10-05-1](https://asc.understandingaccounting.org/asc/460/10/#460-10-05-1)

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The Guarantees Topic establishes the accounting and disclosure requirements to be met by a guarantor for certain guarantees issued and outstanding. This Topic contains only the Overall Subtopic. The guidance in this Subtopic is presented in the following two Subsections:

1.  a
    
    General
    
2.  b
    
    Product [Warranties](https://asc.understandingaccounting.org/glossary/w/#warranty "A guarantee for which the underlying is related to the performance (regarding function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.").

##### [460-10-05-2](https://asc.understandingaccounting.org/asc/460/10/#460-10-05-2)

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The General Subsections address the recognition of a liability by a guarantor at the inception of a guarantee for the obligations the guarantor has undertaken in issuing that guarantee, and require certain disclosures to be made by a guarantor in its interim and annual financial statements about its obligations under guarantees.

##### [460-10-05-3](https://asc.understandingaccounting.org/asc/460/10/#460-10-05-3)

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Additional guidance about certain guarantees, such as put options, is provided in other Topics. Section 460-10-60 provides links to those other Topics. Guarantees that are unique to a particular industry are discussed in the Topic for that industry.

### Product Warranties

##### [460-10-05-4](https://asc.understandingaccounting.org/asc/460/10/#460-10-05-4)

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The Product Warranties Subsections address accounting for product [warranties](https://asc.understandingaccounting.org/glossary/w/#warranty "A guarantee for which the underlying is related to the performance (regarding function, not price) of nonfinancial assets that are owned by the guaranteed party. The obligation may be incurred in connection with the sale of goods or services; if so, it may require further performance by the seller after the sale has taken place.").