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Commitments

ASC 440 Commitments

This Topic provides guidance for general commitments, such as “unused letters of credit; preferred stock dividends in arrears; commitments such as those for plant acquisition; and obligations to reduce debts, maintain working capital, or restrict dividends.”

Overview

ASC 440 provides guidance for general commitments, such as "unused letters of credit; preferred stock dividends in arrears; commitments such as those for plant acquisition; and obligations to reduce debts, maintain working capital, or restrict dividends." This Topic also contains guidance on unconditional purchase obligations, including take-or-pay and throughput contracts.