Accounting for performance guarantee by issuer

Dear All, This is in relation to performance gurantee accouting by issuer under IFRS / Ind AS. As we all know there are 2 types of guarantees i.e. Financial and performance. Under IGAAP till date this were shown as contingent liability by the issuer. However, under Ind AS/ IFRS, Ind AS 109 /IFRS 9 specifically gives the definition of Financial Guarantee and its accounting treatment. However, it does not provide any guidance on accounting for performance guarantee. In this case can anyone help me with the same under IFRS / Ind AS? Available options as per our research: 1) Account it in line with IFRs 9 / Ind AS 109 2) Disclose it as a contingent liability 3) Account it as per INd AS 104 Insurance contracts (since Ind AS 104 gives examples of Insurance contracts which includes performance bonds) Please give appropriate literature reference / industry practice example to your response.
Replies (2)

"Sorry, I am not a featured member."

For featured members contact....

https://www.caclubindia.com/catalogue/featured.asp

Can you give me an example of what type of performance guarantee is it? Financial guarantee is a disclosure. I have noticed banks, insurance and provisions also have performance guarantee. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details