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Liabilities

In: Business and Management

Submitted By nelvieeg
Words 5128
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Initial Recognition, Measurement, Presentation & Disclosure of Liabilities and Shareholder’s Equity

A liability is 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 (IASB Framework).
Apart from satisfying the definition of liability, the framework has also advised the following recognition criteria to be met before a liability could be shown on the face of a financial statement: * The outflow of resources embodying economic benefits (such as cash) from the entity is probable. * The cost / value of the obligation can be measured reliably.

The minimum line items to be included on the face of the statement of financial position are: [IAS 1.54]
(k) trade and other payables
(l)provisions
(m)financial liabilities (excluding amounts shown under (k) and (l))
(n)current tax liabilities and current tax assets, as defined in IAS 12
(o)deferred tax liabilities and deferred tax assets, as defined in IAS 12
(p)liabilities included in disposal groups
(q)non-controlling interests, presented within equity
(r) Issued capital and reserves attributable to owners of the parent.

LIABILITIES
Trade payables, financial liabilities and other liabilities

Recognition | Measurement | Presentation | Disclosures | Recognized if qualifications of liabilities are met. | They are initially recognized at their fair value net of transaction costs incurred. They are subsequently carried at amortized cost using the effective interest method. | Trade payables are classified as current liabilities even if they are settled more than twelve months after the reported reporting period.The term “trade & other payables” is a line item for accounts payable, notes payable, accrued interest on note payable, dividends payable and accrued...

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