Agenda Decision – Guarantees Issued To Other Entities

The International Interpretations Committee recently considered a request to provide additional guidance on accounting for guarantees.

Entities in Australia often issue guarantees, for example issuing a guarantee to allow a subsidiary to obtain a loan from a financial institution or a guarantee in relation to a joint venture’s obligation to a customer, however the accounting for these guarantees is often forgotten.

The decision tree below assists entities in identifying the relevant accounting standard for any guarantees issued.

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Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.