minimum revenue guarantees

Liabilities2

1. 460-10Overall460 Guarantees

   ASC 460-10 requires a guarantor to recognize a liability at the inception of a guarantee for the noncontingent "stand-ready" obligation it undertakes, generally measured at the fair value of the guarantee (with the premium received as a practical expedient), even if payment under the guarantee is not probable. It also imposes extensive disclosures about each guarantee (nature, term, triggering events, maximum potential undiscounted future payments, carrying amount, recourse and collateral) even when the likelihood of payment is remote. Separate Product Warranties Subsections apply ASC 450-20 loss-accrual conditions to warranty obligations and require a tabular rollforward of the aggregate product warranty liability.

2. 460-954Health Care Entities460 Guarantees

   This subtopic applies the general guarantee accounting model in Topic 460 to health care entities, following the scope of Subtopic 954-10. Its only substantive content points to Topic 460's guidance on minimum revenue guarantees, illustrated by a health care entity's guarantee of minimum revenue to a recruited physician.