Financial

Financial
Accounting
Analysis and
and Control
Reporting

Prepared By:
Dr. H. M. Mosarof Hossain
Professor
Department of Finance
University of Dhaka
mosarof@du.ac.bd

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Chapter 11: Current and Long-term Liabilities

Defining and classifying liabilities:

Estimated liabilities:
(i) Warranty liabilities
(ii) Income tax liabilities
(iii) Deferred income tax liabilities

Contingent liabilities: potential legal claims, debt guarantees

Payroll liabilities:

Employer’s payroll taxes:

Employee benefits

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Chapter 11: Current and Long-term Liabilities

Short-term notes payable:

Adjustments at the end of the reporting period

Long-term liabilities

Present value concepts

Applying present value concept to long-term notes:

(i) Interest bearing notes
(ii) Noninterest bearing notes