AC2101 S1 2014 Seminar 11 Financial Liability (Anil)

AC2101 S1 2014 Seminar 11 Financial Liability (Anil) -...

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1 AC2101 – Accounting Recognition and Measurement Anil J N Shukla Adjunct Associate Professor Semester’1’2013-14’ presented by Seminar 11 Financial Liabilities I Recognition & measurement of Fnancial liabilities (±RS 39) 1. Brief’recap’of’deFnition’of’liability’ 2. What’is’a’Fnancial’liability?’ 3. ±inancial’Liabilities’ a. Recognition’&’de-recognition’ b. ClassiFcation’&’Measurement’ c. I±RS’9’ Seminar’11’Agenda’ 2’
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2 Defnition:’ …a’ present’obligation ’oF’the’enterprise’arising’ From’ past’events ,’the’ settlement ’oF’which’is’ expected ’to’result’in’an’ outflow ’From’the’ enterprise’oF’ resources’embodying’economic’benefts’ Recognition’criteria:’ a. Meet’the’ defnition ’oF’liability’ b. Probable’outflow’ oF’resources’ c. Settlement’amount’can’be’ reliably’measured’ Liability’Defnition’&’Recognition’ Under’the’Conceptual’±ramework’ Problems’with’the’Current’Defnition’ IASB’believes’that’the’defnitions’can’be’improved’in’two’ways:’ * Confrming’more’explicitly’that:’ * an’liability’is’an’obligation’(rather’than’the’outflow’oF’economic’ benefts’that’the’obligation’may’generate)’ * a’liability’must’be’capable’oF’generating’outflows’oF’economic’ benefts.’These’outflows’need’not’be’certain.’Their’probability’ need’not’reach’any’minimum’threshold’beFore’the’underlying’ obligation’meets’the’defnition’oF’an’liability.’ * Adding’to’the’guidance’to’support’the’defnition’oF’a’liability’ 4’ A a present obligation of the enterprise arising from past events , the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits
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3 Proposed’New’Liability’Defnition’ A’ liability’ oF’an’entity’is’a’ present’obligation oF’an’entity’to’
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AC2101 S1 2014 Seminar 11 Financial Liability (Anil) -...

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