Table of Contents
Accounting for Guarantees1
| Introduction | 1 |
| Overview of Guarantees | 1 |
| Scope of the Guarantees Topic | 2 |
| Accounting for Guarantees | 4 |
| Direct Guarantees vs. Indirect Guarantees | 6 |
| The Form of Guarantee Payment | 6 |
| The Guaranteed Party | 6 |
| Warranties | 6 |
| Guarantee Disclosures | 8 |
| Examples of Pertinent SEC Filings | 10 |
| Summary | 13 |
| Review Questions | 14 |
Answers to Course Questions15
Glossary16
Index17
Course Details
Author: Steven M. Bragg, CPA
Steven Bragg, CPA, has been the chief financial officer or controller of four companies, as well as a consulting manager at Ernst & Young. He received a master’s degree in finance from Bentley College, an MBA from Babson College, and a Bachelor’s degree in Economics from the University of Maine. He has been a two-time president of the Colorado Mountain Club, and is an avid alpine skier, mountain biker, and certified master diver. Mr. Bragg resides in Centennial, Colorado. He has written more than 300 books and courses, including New Controller Guidebook, GAAP Guidebook, and Payroll Management.
Publication/Revision Date: 9/30/2026
Course Exam Questions (online): 5 (multiple-choice)
Program Delivery Method: NASBA QAS Self-Study
Available Formats of Course Text: PDF or PDF plus printed copy sent in the mail
Course Level, Prerequisites, and Advance Preparation Requirements
| License | Course Level | Prerequisites | Advance Preparation Requirements |
|---|
| CPA | Overview | None | None |
Sponsor ID Numbers
National Registry of CPE Sponsors ID: 107615
State CPA Board Sponsor ID Numbers (where applicable)
Florida Division of Certified Public Accounting: 0004761
Hawaii Board of Public Accountancy: 14003
New York State Board for Public Accountancy: 002146
Ohio Accountancy Board: CPE .51 PSR
Pennsylvania State Board of Accountancy: PX178025
Texas State Board of Public Accountancy: 009349
Learning Objectives
As a result of studying the course material, you should be able to meet the objectives listed below:
- Identify the different types of guarantees.
- Specify the types of guarantees that fall within the scope of the GAAP Guarantees topic.
- Recall the methods used to measure subsequent changes in the amount of a guarantee.
- Specify the circumstances under which a loss contingency should be recorded.
