Current liabilities and contingencies

Current liabilities and contingencies - Current liabilities...

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Comm 450 Sections 101 & 102 Fall 2011 1 Current liabilities and contingencies References: Lo and Fisher, Chapter 11
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Comm 450 Sections 101 & 102 Fall 2011 2 Canadian reporting standards o With effect from periods beginning on or after January 1, 2011, all Canadian public companies must report using the International Financial Reporting Standards (IFRS), found in Part I of the CICA Handbook – Accounting .
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Comm 450 Sections 101 & 102 Fall 2011 3 Canadian reporting standards o With effect from periods beginning on or after January 1, 2011, all Canadian private companies must either report using the International Financial Reporting Standards, found in Part I of the CICA Handbook – Accounting or the Accounting Standards for Private Enterprises (ASPE), found in Part II of the CICA Handbook -- Accounting .
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Comm 450 Sections 101 & 102 Fall 2011 4 Accounting Standards for Private Enterprises o The ASPEs replace the old Canadian accounting standards, including the differential reporting options previously available to non-publicly accountable enterprises. o In general, ASPEs are less onerous than full compliance with IFRS.
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Comm 450 Sections 101 & 102 Fall 2011 5 Accounting Standards for Private Enterprises o Both IFRS and ASPEs are self-contained. Private enterprises must choose to use one set of standards or the other. o Unlike the previous differential reporting options, unanimous consent of shareholders is not required to adopt ASPEs.
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Comm 450 Sections 101 & 102 Fall 2011 6 Basis for Business 450 o Commerce 450 will focus on the requirements for publicly accountable enterprises. o Differences between the IFRS and ASPE requirements will be highlighted.
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Comm 450 Sections 101 & 102 Fall 2011 7 Definition of liabilities o defined as “obligations of an entity 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.”
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Comm 450 Sections 101 & 102 Fall 2011 8 Definition of liabilities Three characteristics: 1. present obligation; 2. arising from a past event; and 3. expected to result in an outflow of economic benefits. All three characteristics must be present.
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Comm 450 Sections 101 & 102 Fall 2011 9 Characteristics of a liability o an obligation to others that will be settled in the future by transferring or using cash or other assets, providing services, or giving up other economic benefits either on a date that can be determined, when some specified event occurs, or on demand. o
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This note was uploaded on 12/10/2011 for the course COMM 450 taught by Professor Jackes during the Spring '10 term at The University of British Columbia.

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Current liabilities and contingencies - Current liabilities...

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