.... What is a “Current Liabilities”? What is a liability? Probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or to provide services to other entities in the future as a result of past transactions or events. FASB Statement of Financial Accounting Concepts No. 6, “Elements of Financial Statements” Current liabilities are: Obligations whose liquidation is reasonably expected to require the use of current assets or the creation of other current liabilities. Accounting Research Bulletin No. 43, “Restatement and Revision of Accounting Research Bulletins”. SFAS No.78 indicates that current liabilities should include obligations that are due on demand or that will become due on demand within one year from the balance sheet date. 2. Typical current liabilities Accounts payable, Notes payable, Current maturities of long-term debt, Short-term obligations expected to be refinanced, Dividends Payable, Returnable deposits, Unearned revenues, Sales taxes payable, Income taxes payable, Employee-related Liabilities a. Notes Payables (N/P) Notes Payables are written promises to pay a certain sum of money on a specified future date. Notes payable that arise from cash-borrowing activities are generally of two types: (1) Interest-bearing notes, and (2) Zero-interest-bearing...
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...ACCT 2015 INTERMEDIATE FNANCIAL ACCOUNTING 11 Current Liabilities, Contingencies & Provisions Required Reading: Alfredson – Chap 5, Keiso – Chaps 13, IAS 37 Learning Objectives 1. CURRENT LIABILITIES: – Define and explain types of current liabilities. – Account for the major types 2. IAS 37 PROVISIONS & CONTINGENCIES – Define Provisions and answer the following questions: • • • Why do them When to provide How much to provide – Calculate and account for Restructuring Provisions – Define Contingent Assets & Liabilities and apply relevant measurement and recognition rules – Apply IAS 37 Disclosure Requirements CURRENT LIABILITIES LIABILITY – Claims against the business arising out of a past transaction that will cause an outflow of resources e.g. loans, notes payable • Long-Term Liability - Obligations that a company does not reasonably expect to liquidate within the normal operating cycle Current Liability - Obligations that a company reasonably expects to liquidate either through the use of current assets or the creation of other current liabilities. • 1 CURRENT LIABILITIES E13-2 (Accounts and Notes Payable) The following are selected 2007 transactions of Sean Astin Corporation. Sept. 1 - Purchased inventory from Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system. Oct. 1 - Issued a $50,000, 12-month, 8% note to Encino in payment of account. Oct. 1 - Borrowed $50,000 from the Shore Bank by signing...
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...Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities Current Liabilities ...
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...Current Liabilities and Contingencies Current Liabilities IAS 1, Presentation of Financial Statements, requires liabilities to be classified as current or noncurrent. Current liabilities are those liabilities that a company: a. expects to settle in its normal operating cycle, b. holds primarily for the purpose of trading, c. expects to settle within twelve months of the balance sheet date, or d. does not have the right to defer until twelve months after the balance sheet date. The classification and accounting for current liabilities under IFRS is very similar to U.S. GAAP. Differences relate to the following: * Refinanced short-term debt – may be reclassified as long-term debt only if refinancing is completed prior to the balance sheet date (under U.S. GAAP, a refinancing agreement must be reached but the refinancing need not be completed by the balance sheet date) * Amounts payable on demand due to violation of debt covenants – must be classified as current unless a 12-month waiver is obtained from the lender by the balance sheet date (waiver must be obtained by the annual report issuance date under U.S. GAAP) * Bank overdrafts – are netted against cash if the overdrafts form an integral part of the entity’s cash management (classified as current liabilities under U.S. GAAP). * Deferred income taxes – deferred income tax assets and deferred income tax liabilities are not allowed to be classified as current (under U.S. GAAP, deferred...
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...Chapter 15 Current Liabilities Management ( Learning Goals 1. Review the key components of credit terms, accounts payable, and the procedures for analyzing them. 2. Understand the effects of stretching accounts payable on their cost and on the use of accruals. 3. Describe interest rates and the basic types of unsecured bank sources of short-term loans. 4. Discuss the basic features of commercial paper and the key aspects of international short-term loans. 5. Explain the characteristics of secured short-term loans and the use of accounts receivable as short-term-loan collateral. 6. Describe the various ways in which inventory can be used as short-term-loan collateral. ( True/False 1. Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations of the firm. Answer: FALSE Level of Difficulty: 1 Learning Goal: 1 Topic: Accounts Payable 2. Notes payable can be either spontaneous secured or spontaneous unsecured financing and result from the normal operations of the firm. Answer: FALSE Level of Difficulty: 1 Learning Goal: 1 Topic: Notes Payable 3. Accounts payable result from transactions in which merchandise is purchased but no formal note is signed to show the purchaser’s liability to the seller. Answer: TRUE Level of Difficulty: 1 Learning Goal: 1 Topic: Accounts Payable 4. In credit terms, EOM (End-of-Month) indicates that the accounts...
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...CONTABILIDAD INTERMEDIA II PROYECTO FINAL MAC, S.A. Balanza de comprobación al 31 de Diciembre de 2009 (En pesos) Concepto | Debe | Haber | Bancos | 1,035,000 | | Clientes | 1,560,000 | | Reserva para cuentas incobrables | | 788,000 | Documentos por cobrar | 234,000 | | Inventarios | 1,500,000 | | Iva acreditable | 0 | | Seguro pagado por adelantado | 0 | | Edificio | 3,201,000 | | Depreciación acumulada del edificio | | 841,000 | Oficina | 900,000 | | Depreciación acumulada de oficina | | 100,000 | Mobiliario y equipo de oficina | 181,100 | | Depreciación acumulada de mobiliario y equipo | | 36,200 | Equipo de transporte | 1,250,000 | | Depreciación acumulada de equipo transporte | | 250,000 | Proveedores | | 188,549 | Acreedores Diversos | | 480,551 | ISR por pagar | | | IVA por pagar | | 156,000 | IMSS por pagar | | 15,800 | Préstamo bancario LP | | 2,000,000 | Pasivo laboral | | 220,000 | Impuestos diferidos | | 35,000 | Capital social | | 2,500,000 | Utilidades acumuladas | | 750,000 | Utilidad del ejercicio | | 1,500,000 | Totales | $ 9,861,100 | $ 9,861,100 | A continuación se muestran las transacciones realizadas por la compañía durante el ejercicio del 2010. La empresa utiliza el sistema de inventarios perpetuos. 1) 3/ene Compró inventario a Encino, SA por $110,000 más IVA. 2) 1/feb Firmó un pagaré a Encino, SA a 12...
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...and processes, engineering documents and intellectual property including engineering and process patents shall be transferred to the new entity. C. All real-state assets shall remain in the current Yeats legal entity (land and buildings) D. All facilities will be leased back to the new TSEYEATS LLC entity by the original skeleton of Yeats Corporation. E. Capital Lease value will be based on a 30 year amortization schedule and 7.5% per year interest rate F. Cash payment of $92.5 Million for all assets to be transferred to TSE, as described in items A through E G. Yeats bonus payment: $350K total bonus to be paid over a period of 5 years in 5 installments of $70K H. No layoffs for 18 months with ability to relocate labor as needed across organization. First refusal right granted to YVC employees 3. Form of Consideration: A. Cash: $92.5 million for selected YVC assets B. TSE Stock: N/A C. Notes: N/A D. Other: Capital Lease of current Yates Facilities E. Total per Share: N/A 4. Proposed Closing Date: A. Closing to take place in 90 days pending on due-diligence due to start on the day this instrument is executed 5. Conditions Precedent to Closing: A. Main representations made by Yeats to be verified during the due-diligence period: 1. Yates is unaware of any existing liability related to defective product or manufacturing process 2. No Labor union pending suits or know non-compliance with labor regulations 3. No known violation of Intellectual Property and/or...
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...future investment in your chosen company. This process is called Due Diligence: essentially, you will play the role of an objective third party. This means that your only loyalty is to an objective account of the current state of affairs. You are to choose a company and have it approved by your teacher. You will then be responsible for analyzing the company and making recommendations either for or against future investment. You will have to defend your analysis. Remember: you are working for your teacher, not for the company: Due Diligence requires objectivity! This assignment is graded and your marks count for 5 points of your final marks. You will receive a group mark, both for content and presentation and for your performance in English. First, you must select the company you are going to analyze (week 24 – groups have to be formed by week 23) and have it approved by your teacher. To be included in your analysis are the following: - SWOT-analysis - Legal Status (pending contracts, current litigation) - Financial Status (accounting, cash reserves, recent/future investments, share price) - IT (systems involved, recent updates, future plans) - Marketing (Strategies, competitors) - Operations (management, supply/distribution networks) - Environmental Liabilities (current costs, future projections, environmental planning) Remember: your job is to analyze the company for a potential investor, and thus you should be able to give clear advice and objective arguments for your opinions...
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...| ROE | DUPONT Analysis | | Current Ratio | Quick Ratio | Cash Ratio | | NI/Equity | NI/Sales | Sales/Assets | Assets/Equity | CA/CL | (CA-Inv.)/CL | Cash/CL | 2009 | 0.0538 | 0.0708 | 0.4587 | 1.6584 | 1.3182 | 0.7491 | 0.4303 | 2010 | 0.0928 | 0.1073 | 0.5775 | 1.4973 | 2.5551 | 1.1875 | 0.5921 | 2011 | 0.0906 | 0.0994 | 0.5797 | 1.5729 | 3.3915 | 1.6024 | 0.6626 | Has the company drastically increased or decreased its use of debt? There are slight increase and decrease in use of debt, but it does not changed drastically. Has the company’s liquidity position changed over the three years? Yes, the company current and quick ratio have increased; especially there is a drastic increase to the quick ratio. Has ROE been rising or falling? If so, what has contributed to this change? The company’s ROE has been rising, because there was a huge increase in net income, starting from 2010. What trends do you see developing in the data? The company is becoming more liquid every year. It is very good to pay of the dept but there is less tax saving so they should lower the liquid ratio little bit. Also there cash is decreasing a little bit so they might want to have a little bit more cash for future investment. Do you see any major changes in the financial status of the company over the time period? The current liabilities have decreased drastically and their net income have increased almost twice as much. And their current asset is increasing but there cash is decreasing...
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...Legal Basis for Existence. • Identify state laws, local charters, or ordinances governing the creation and operations of the agency. The Taney County Health Department was established by a vote of the people of Taney County, Missouri, in accordance with Sections 205.010 to 205.150 Revised Statutes of Missouri, 1949, as amended by House Bill No. 307, of the 66th General Assembly of Missouri, do hereby establish these by-laws for their guidance and for the operation of the Taney County Health Department. Under these statutes, the health department was established by a vote of the people in 1960 and opened in 1961. The current Board members are Debbie Redford, Chair- Beth Huddleston, Vice-Chair- Dr. Robert Griffith, Secretary/Treasurer- Sonja Hayter, Board Member- Wayne Dietrich, Board Member. • Discuss the agency’s legal liability, past problems concerning liability and insurance coverage. The Taney County Health Department is responsible for the development and enforcement of local public health ordinances; or the enforcement of state rules if local public health ordinances do not exist. The past problems were with human resources, and the reducing of the resources, and some ordinance for animal control. Taney County Health Department has a comprehensive insurance, which includes insurance of the buildings, vehicles, and health insurance for the employees. • Explain how the above mentioned information relates or pertains to the department to which you are assigned. The employees...
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...There are a number of ethical and legal liabilities arising out of the current situation Click Link Below To Buy: http://hwaid.com/shop/there-are-a-number-of-ethical-and-legal-liabilities-arising-out-of-the-current-situation/ Application: Organizational Responsibilities and a Troubled Physician The obligations between health care providers and the organizations for whom they work run in both directions, and these obligations are both legal and ethical. In the Application Assignment, you will consider a scenario involving a troubled physician and discuss organizational liability issues arising from this individual's behavior. You will also propose ethically appropriate measures an organization can and should take on this physician's behalf. To prepare for the Application: Read the following scenario, imagining that you are an entry-level administrator at this hospital who is being asked to give advice to the CEO about this case. Consider the rights and duties that are entailed by this kind of contract. Consider, too, not only the legal liabilities and obligations of the organization in this scenario, but also assess what you think are the organization's ethical duties to this physician. Dr. Smith is an experienced, talented, and high-admitting cardiac surgeon. Currently, he is a community-based physician with privileges at the hospital. The hospital board would like to ask Dr. Smith to become a partner in their venture of creating a cardiovascular institute...
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... 1. The bank can apply expert knowledge to estimate distribution functions 2. Reflect the Level of operational risk: adjustment on the result of the scorecard 3. Identify the Source of Operational risk: This will help in specifically what part of the product or business lines and which units causes operational risk 4. Present causes of operational risk: management can take actions on what the operational scorecard shows which will help mitigate operational risk 5. Reflect on quality of operations: the operational risk level of a bank depends on the quality level. Changes on operational level can help reduce current risk by improving quality of operations. 6. Supplement information: information is really vital and it will help for the bank to pinpoint which contributes to its current operational risk. 7. Adjust on the current level of operational risk: this will allow for the management to set its priorities. Source: Anders, U., & Sandstedt, M. (2001). An Operational Risk Scorecard Approach.Operational Risk, 1, 47. Retrieved April 14, 2013, from...
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...Point In Time No additional ACOE districts should be brought online to Escape OL5 software. The current districts on Escape OL5 in Alameda County remain in an implementation phase expectation of support. * OL5 is not yet a turnkey software package- * Still in development with goal of effective & efficient processes * Districts are part of the “debugging” * CRs appear to languish for some time & priority is determined by whom? * Frequent releases yet work-arounds continue for basic California school business accounting and payroll processes * Reliable? Successive releases sometimes lose previous fixes * Accurate? Successive trials do not always yield the same result * Responsive? Does not provide for some basic processes * Confusing? Too many options when the basics aren’t reliable * Credible? One whole manual chapter & report are not usable * Resources? ET expanding to other districts… * Current on-line districts have not all completed a full year cycle * Steeper learning curves due to frequent releases * Flux in legislation & resources is dynamic as it is * Accountants struggle with “art” - custom reports, data access * Basic business processes “science” must be tight * Key accounting positions are not being backfilled * Current ACOE support staff is in flux * Forensic accounting skills to drill down into software &...
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...Executive Summary Widget Production ISCOM / 305 University of Phoenix Taylor Inc is manufacturing the Widget X that requires a special assembly line. At this point re-evaluation of labor productivity is needed due to the difference between the regular Widgets and the Widget X. With careful consideration of this project, operations-management must compare the current labor productivity to two alternative methods that would help them with the increase. A cost-benefit matrix will be provided to show comparison of current labor productivity, alternative one and alternative two labor productivity as well as, the effects the alternatives would have, and what the benefits of networking strategies to streamline operational procedures would be. Taylor Inc Cost Benefit Matrix | |Current |Alternative 1 |Alternative 2 | |Wasted Motion |27% |1% |7% | | Physical Lifting |42 |12 |23 | |People Required |17 |6 |9 | |Productivity |208 |392 |288...
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...Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that even local explorers don’t venture inside the towers. My online research regarding the Brewster-Douglass projects revealed almost nothing concerning the current internal state of the buildings. Friends would later tell me that...
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