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Is guarantee a off balance sheet item?

In: Investing and Financial Markets [Edit categories]

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You'll need to specify what type of Guarantee your speaking of.

The guarantee given for your products should be getting a reserve accrual for anticipated claims, which is certainly a BS item.

Most direct Guarantees given for financial reasons, as in Ging an affiliated Co so they can use some of your better Cos credit rating, or any G that impairs the available credit line other wise avail - even if it doesn't have a money cost involved - (which most all do), likewise has a balance sheet effect.

First answer by IamLostRU. Last edit by IamLostRU. Contributor trust: 1567 [recommend contributor ]. Question popularity: 24 [recommend question].

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