CURRENT LIABILITIES LIABILITIES v NOT Required: % to know dhe idemity of the payee % Certain timing and exact amount Y/ aice frm pat ransom obligati ing. events: + Tegal events - arise from provision of law] contract + constenctive evente ~ arise from emity’ past actions ¥ Stiilement requires Outflow of tronomic benefitt through: 9) Payment of cat, ) Payment of noncash 18 Pewision of Services * Ghooainiaends payable — x ii ean. bene oan ity ¥ equity (additional shave capital) MEASUREMENT elevedt v Nominal Peek eee I ir vane canal ‘ire Fair Value Fair vane | vy | an Uiaviinieg, | © Amorizet | aie _ transaction] Amortined i. Trelsve peal Wate | Notwe on cor @ Rate ‘wwstvanc uawnnes —| Bastiat of [oy timate ot | | i iagny | Ui leche Cash outflow. Cath owiflow measured at | Rate if iitiathy recent valwe)| measured at Pv FINANCIAL STATEMENT PRESENTATION (PAS 4) ‘CURRENT LiaBiLITIES ANY of the fillowing criteria: 'v {0 be.stiled Within normal operating cycle —* trade payabies ¥ 40 be setiled within [2 monte atter the reporting period V held for trading —> Financial tiab @ FUPL V- Ahe entity has no unconditional Hight fe defer setiement for at leatt 12 months Examplac: Trade and other payables Accrued expences Financial Habittiee held for trading Long-term debt currenty maturing Current pertion of long-term debt Refundable deposits Short-term boreowing PayraN tases prvate Current provisions VAT payabie Current fax tabilty Escrow liability Bank overdratt Credit balances In accounts receivable Unearned income realisabie wlin 12 monthe 1 bela” sne ( mkition oncetet) ¥ if any of Hhowe criteria ar oF met > non-current liabilityREFINANCING ~ appltes to long term debt currently matwring > GR: Current liability, = may be dont thrn extension of maturity dale or icsnance of bonds the proceeds of which ic to settle he currently maturing ooligatien renseareinlecnaan [Non-current fiabitity] (PN) ae Right #0 refinance. ———* No Fight to retin =< Refinan Aitec year ena. ——>[eurrent Tabi] walang om) BREACH OF CoNTRACIS | COVENANTS: GR: long-term obligation becomes immediately demandable ————————» current fia Breach of No grace peried: Guenant Given Grace period after year ond Duration # grace period fan] vefwe year end << lest than 12 monte P month or more [non current viability |") SPECIFIC CUPRENT LIABILITIES: TRADE ACCOUNTS PAYABLE Wnadjusied balance ca Undeliverea | post-dated cheeks he Debit balances of AP 1X Tif unadjucted amount is a net amount Unrecorded purchase returns and allowances (xv) Discounts forfeited Oy) Sunder net meted Effect of Freight terms 1+ pertains t» goods in transit: Adjusted batance + FOB SP — valid purchate — 1 AP + FOB Ded. — ignored we (e) Freight coct “ows, Freight Colest 7 gnore + FOB Dest., Freight prepaid + Foe SP, Freight prepaid — 1 ap + FOB Dest, Freight collect —J AP MNEARNED INCOME = may tome from = v Goods ____Uneaened tacome Earned portion | Beginning bal. x 4 Services ¥ Use of enitys revourcer Coun receipts ow Y Gift certificates Ending bal. > CSS S SSS Gihcatheae| Pevabie SST Beginning bal. xe Redemption (whether from pror/currunt ye cates) x#] Gath rectipn from daer » Deposits canceled Deposits expired xe Ending bal 7REFUNDABLE DEPOSITS = Cash or property received fromm customert but which are fefundable after compliance w/ certain tonditionc. Deposits rehnmed or applied > | Beginning bai- J Depostte cancented ~ Depesite expired Refundable Deposits a fF w Camipnperty ae Refundable Deposits x ‘Diner Income x PAYROLL TAXES LIABILITY deducted fam __Withnetding daces _ Employtt contributions _— EmployéR contibutiont K Amounts withheld from salaries of employees —» pavrall iaxes payable until remitted to the appropriate gprernment authority the Salary of the employee tscROW LABILITY F EcereW- ute of third part [intermediary (bank), which Wolds an ascer oF funds before Hey are francterred fam one properly f another Pw: Third party (bank) Injerea and other charges paid x6] Cath receipts Interest income Cath trancforc er payments (Remittances) x« | Beginning bal- cd ~ w Ending bal *