13-Current - Chapter 13 Liabilities Recognition Common Current and Liabilities Measurement What is a current liability Liability definition and

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
    Chapter 13 Chapter 13     Non-Financial and Current Liabilities Non-Financial and Current Liabilities
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Non-Financial and Current  Liabilities Recognition and Measurement •Liability definition and characteristics •Financial liabilities and non-financial liabilities •Measurement Non-Financial Liabilities •Decommissioning and restoration obligations •Unearned revenues •Product guarantees and customer programs •Contingencies and uncertain commitments •Financial guarantees •Commitments Common Current Liabilities •What is a current liability? •Bank indebtedness and credit facilities •Accounts payable •Notes payable •Current maturities of long- term debt •Short-term debt expected to be refinanced •Dividends payable •Rents and royalties payable •Customer advances and deposits •Taxes payable •Employee-related liabilities Presentation, Disclosure, and Analysis •Presentation and disclosure of current liabilities •Presentation and disclosure of contingencies, guarantees, and commitments •Analysis IFRS / Private Enterprise GAAP Comparison •Comparison chart •Looking ahead
Background image of page 2
3 Current Definition and Characteristics Current Definition and Characteristics IFRS and Accounting Standards for Private Enterprises currently define a liability as Obligation of an enterprise Arising from past transactions or events The settlement of which may result in the transfer or use of assets, provision of services, or other yielding of economic benefits in the future Past Present Future Because of  a past event For future  settlement The company  has a  present  obligation
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Current Definition and  Current Definition and  Characteristics Characteristics Current definition therefore describes three essential characteristics of a liability as: 1. Obligation requiring the transfer or use of an asset or provision of a service or giving up other economic benefits, to be settled on a determinable date or on the occurrence of an event or on demand 2. There is little or no discretion to avoid the obligation 3. Obligation arises from a transaction or event which has already occurred
Background image of page 4
5 Proposed Definition and  Proposed Definition and  Characteristics Characteristics Proposed definition of a liability is Present economic obligation For which the entity is the obligor
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Proposed Definition and  Proposed Definition and  Characteristics Characteristics Based on this definition, liability would have three essential characteristics: Exists at present time (i.e. at balance sheet date) Represents economic burdens or obligations Always includes unconditional obligations (including stand-ready obligations) These burdens / obligations are enforceable Includes constructive obligations (obligations based on entity’s present/past practices)
Background image of page 6
7 Financial Liabilities Financial Liabilities Financial liability is any liability that is a contractual obligation to either: 1. deliver cash or other financial asset to
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/26/2011 for the course ACCT 3410 taught by Professor Jobs during the Spring '11 term at Kwantlen Polytechnic University.

Page1 / 69

13-Current - Chapter 13 Liabilities Recognition Common Current and Liabilities Measurement What is a current liability Liability definition and

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online