10 Current Liabilities And Contingencies ntermediate Accounting Accounting School. Zhongnan
10 Current Liabilities And Contingencies Accounting School ·Zhongnan University of Economics & Law ntermediate Accounting I 中级会计学
1. Conceptual Overview of Liabilities Liabilities are probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services to other entities in the future as a result of past transactions or events
1. Conceptual Overview of Liabilities Liabilities are probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services to other entities in the future as a result of past transactions or events. Intermediate Accounting 10 Current Liabilities And Contingencies
Three essential characteristics ofa liability 1. It involves a present duty or responsibility of the company to one or more entities that will be settled by the probable future transfer or use of assets at a specified or determinable date. on occurrence of a specific event, or on demand 2. The duty or responsibility obligates theAN company, leaving it little or no discretion to avoid the future sacrifice 3. The transaction or other event obligating the company has already happened
Three Essential Characteristics of a Liability 1.It involves a present duty or responsibility of the company to one or more entities that will be settled by the probable future transfer or use of assets at a specified or determinable date, on occurrence of a specific event, or on demand. 2.The duty or responsibility obligates the company, leaving it little or no discretion to avoid the future sacrifice. 3.The transaction or other event obligating the company has already happened. Intermediate Accounting 10 Current Liabilities And Contingencies
Primary liabilities Issues 1. Identification ofliabilities--the detection of a company's obligations 2. Measurement or valuation of the liabilities and the related expense-the determination of an amount to attach to each obligation and to match as an expense against revenues Reporting on the financial statements-the specific disclosures in both the company's financial statements and the related notes
Primary Liabilities Issues 1. Identification of liabilities—the detection of a company’s obligations. 2. Measurement or valuation of the liabilities and the related expense—the determination of an amount to attach to each obligation and to match as an expense against revenues. 3. Reporting on the financial statements—the specific disclosures in both the company’s financial statements and the related notes. Intermediate Accounting 10 Current Liabilities And Contingencies
2. Nature and definition of current Liabilities or the creation of other current liabilities within one year or an operating cycle, whichever is longer
2. Nature and Definition of Current Liabilities Current liabilities are obligations whose liquidation is expected to require the used of existing current assets... …or the creation of other current liabilities within one year or an operating cycle, whichever is longer. Intermediate Accounting 10 Current Liabilities And Contingencies