Mod 1 Non-Financial + Current Liabilities

Tr ucawebctur wlc5122001tp0cobaltm ainfr amedowebct

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ebct/ur w/lc5122001.tp0/cobaltM ainFr ame.dowebct 3/6 8/27/13 Blackboar d Lear ning System Non- f inanc ial liabilit ies are usually not payable in c ash and, t heref ore, measured dif f erent ly. F ollowing are some of t he examples of non- f inanc ial liabilit ies: Unearned Rev enue is c ash rec eived f rom a c ust omer in one period f or goods or servic es t hat are t o be provided in a f ut ure period and t heref ore rec ognized as obligat ion f or an ent it y. Unearned revenue is c lassif ied as liabilit y and is measured at t he f air value of t he goods or servic es t o be delivered in t he f ut ure. An asset retirement obligation, a non- f inanc ial liabilit y, is measured at t he best est imat e of t he expendit ure required t o set t le t he present obligat ion at t he balanc e sheet dat e or t ransf er it t o a t hird part y. C ontingent liabilities are t he amount a c ompany might have t o pay dependent upon whet her a f ut ure event oc c urs or not . Ac c ording CICA Handbook, Sec t ion 3290 “Cont ingenc ies”, GAAP def ines a c ont ingenc y f or a c ompany as, “an exist ing c ondit ion or sit uat ion involving unc ert aint y as t o possible gain or loss t o an ent erprise t hat will ult imat ely be resolved when one or more f ut ure event s oc c ur or f ail t o oc c ur” (Def init ion sec t ion, para....
View Full Document

This note was uploaded on 02/05/2014 for the course BUS 370 taught by Professor Andreathomas during the Spring '13 term at Capital University.

Ask a homework question - tutors are online