definition and recognition criteria of liabilities
Q: which of the followings is considered as long term liability :Select one .a mortgage payable .b…
A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…
Q: Which of the following should not be included in the current liability section of the balance sheet?…
A: The balance sheet is the statement of financial position of the business.
Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…
A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…
Q: Bond premium should be reported in the statement of financial position A. along with other premium…
A: A premium on bonds means investors are satisfied with a rate of interest lower than the rate stated…
Q: Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the…
A: the following loan commitments are within the scope of IPFRS 9:: Loan commitments that can be…
Q: Liabilities are obligations of a company to creditor. Select one: True False
A: Liabilities are obligations of a company to creditor. Answer: False Explanation: A liability is a…
Q: Assume you are working in public accounting and the client you are assisting has a question on the…
A: A bond discount expense has been incurred and being an employee for a Public Accounting what…
Q: t relevant assertion should be used to record loans receivable net of an allowance for loan losses…
A: A loan receivable is that the amount of money owed from a human to a creditor (typically a bank or…
Q: The following items are found in the financial statements. Indicate how each of these items should…
A: Introduction: Balance sheet: All assets and liabilities are shown in Balance sheet. It tells the net…
Q: A deposit premium can be defined as The initial payment schedule required to institute a premium…
A: An insurance contract is a contract where the insured pays the insurer premiums for coverage…
Q: 1. Which of the following is an essential characteristic for an obligation to qualify as a…
A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Short-term obligations can be reported as noncurrent liabilities if the company (a) intends to…
A: There are two conditions in which short term obligations can be reported as non current liabilities…
Q: A debt amortization schedule prepared for each debt and equity is considered a good control. O True…
A: Debt Amortization Schedule: A loan amortisation schedule is a comprehensive table of periodic loan…
Q: In accounting for short-term debt expected to be refinanced to long-term debt:(a) GAAP uses the…
A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and has…
Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…
A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…
Q: RUE OR FLASE? The effect of a lender agreeing to give the borrowing entity a grace period within…
A: Non Current Liability are long term liabilities where their payment is due 12 months after the…
Q: Which of the following statements is correct? Select one:
A: Short term obligation means any financial obligation payable within a period of 12 months.
Q: What is the effective interest rate of a bond or other debt instrument measured at amortized cost?…
A: The effective rate is increased times the bond's value at the beginning of the accounting amount to…
Q: The application of the present value factors in the computation of carrying amounts of bonds payable…
A: Introduction:- The following principal application for the present value factors in the computation…
Q: How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial…
A: Financial liabilities can be measured at amortized cost by using effective interest method and it…
Q: Bond discount should be presented in the financial statements of the issue as a(n) Contra liability…
A: >Bond discount is recorded in the books of account as the difference between Face value of Bond…
Q: What makes product warranties considered as contingent liabilities? Also, what Generally Accepted…
A: Contingent Liability is a liabilty that may arise in outcome of future uncertain amount.
Q: Access the FASB Accounting Standards Codification at the FASB website ( www.fasb.org ). Determine…
A: 1. The accounting disclosure requirements for maturities of long – term debt citation is FASB ASC…
Q: Investment in debt instruments classified as FA@FVTOCI recognizes which of the following in OCI? a)…
A: (a) Changes in fair value is the correct answer.
Q: In accounting for short-term debt expected to be refinanced to long-term debt: a. GAAP uses the…
A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and…
Q: Securitization is the financial practice of pooling various types of contractual debt, such as…
A: Securitization is a process in which a financial institution or any company merges its liquid assets…
Q: A long-term liability should be reported as a current liability in a classified balance sheet if the…
A: Balance sheet: The balance sheet shows the financial position of the company by recording all the…
Q: Which of the following items would most likely be classifi ed as a fi nancing activity? A . Issuance…
A: Financing activities are a major part of any entity. These activities are correlated to the issuance…
Q: Through financial reporting perspective, what are the liability three essential characteristics…
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors…
Q: amortized debt premium should be reported on the balance sheet of the insurer as a Group of answer…
A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium…
Q: describe and compare alternative ways to estimate the probability of company defaulting on its debt…
A: The predicted rise in the market value of its assets, the face value and maturity of the debt, and…
Q: What are current and noncurrent accounts among the following: - Deposit Liabilities - Bills…
A: Current liabilities are those Liabilities which are to be repaid within one year.. Any Liabilities…
Q: RUE OR FALSE? The effect of a lender agreeing to give the borrowing entity a grace period after the…
A: Current liabilities: Current liabilities are the obligations that are to be met within a year or 12…
Q: When the initial present value of a bond payable is higher than its face amount, an entity would…
A: The answer is stated below:
Q: Due to banks Deposits from customers Other liabilities Subordinated debt Taxation classify it into…
A: current liabilities - current liabilities should be repaid by the company within one year. examples…
Q: 1.The following is a current liability: a. A long-term debt with current maturity, which will be…
A:
Q: What are the three elements of the definition for liabilities? List from the following items that…
A: Liabilities are the obligations of the individuals or the company which have to be paid back after a…
Q: ll of the following are differences between IFRS and GAAP in accounting for liabilities except: a.…
A: Definition: Bonds: A bond is a debt instrument, which is repaid along with a specific rate of…
Q: Which of the following should be classified as noncurrent liability? Unearned revenue Accrued…
A: >Non current liabilities are the liabilities that are to be repaid in long term, say, after 1…
Q: instrument conditional on the holder (the counterparty) exercising its contractual obligation to…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: ou are required to identify and give reasons for the appropriate classification of the debt…
A: Debt instrument can be defined as the financial instrument which acts as a tool for the business…
Apply the definition and recognition criteria of liabilities, discuss why, or why not, each of the following items is recognised as a liability in the financial statement.
- GST outlays
- GST collection
- Provision for warranty
- Unearned revenue
- An agreement to act as guarantor for another firm’s borrowings.
- Dividend payable
- Allowance for doubtful debts
Accrued interest
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- How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial liabilities similar to that of U.S. GAAP? Also briefly describe the requirements regarding an option to designate a financial liability at fair value through profit and loss. Q: Does U.S. GAAP allow fair value option for financial assets and liabilities? Q; What is “own credit” issue related to financial liabilities measured at fair value through profit and loss? Q: How does IFRS 9 address this “own credit” issue?The following is attached to the company's financial statements, pay attention to the noncurrent liabilities and shareholders’ equity sections. Questions:a. Based on the financial statements above, explain possible “debt to equity swap” scheme carried out by the client!b. What evidence do you need to collect to ensure that the client's debt to equity swap is free from material misstatement?Which of the following loan commitments are within the scope of IPFRS 9? * Loan commitments that the entity designates as financial liabilities at fair value through profit or loss Loan commitments that can be settled net in cash or by delivering or issuing another financial instrument Commitments to provide a loan at a below-market interest rate
- Discuss the impact of the balance sheet, income sheet, and statement of CF when securitization is recorded as a sales vs secured borrowing.Debt issuance costs are: Accounted for as a deduction from the equity balance on the balance sheet Recognized initially as a current liability on the balance sheet Amortized over the term of the related debt liability Expensed on the income statement when the transaction occurs Which one is the correct answer please?in relation to receivables, an entity is required by PFRSs toa. All of theseb. disclose any receivables pledged as collateralc. classify receivables as current and non-current in the statement of financial positiond. disclose all significant concentration of credit risk arising from receivables
- Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securitiesThese types of services may be reported as off-balance sheet items except: a. Intangible assets e.g., mortgage servicing rights. b. Standby letter of credit agreement. c. Securitization of collateral. d. Derivatives, hedge funds agreement, futures.IFRS requires companies to measure their financial assets at fair value except when based on:(a) whether the equity method of accounting is used.(b) whether the fi nancial asset is a debt investment.(c) whether the fi nancial asset is an equity investment.(d) whether an investment is classifi ed as trading.
- Explain a debt instrument against the following criteria: Issuer Investor Maturity Pricing conventions/Rules SeniorityWhich of the following is correct regarding the classification of investment in debt instruments as financial asset at fair value through OCI? A. All of these. B. An entity may make an irrevocable election to classify investment in a debt instrument that is not held for trading' as such. C. In order to be classified as such, a debt instrument needs to both have simple principal and interest cash flows and be held in a business model in which both holding and selling financial i assets are integral to meeting management's objectives. D. This classification is not allowed for investment in debt instruments.When bonds and other debt securities are issued, payments such as legal costs, printing costs, and underwriting fees, are referred to as debt issuance costs (called transaction costs under IFRS). If Rushing International prepares its financial statements using IFRS: a. the recorded amount of the debt is increased by the transaction costs. b. the decrease in the effective interest rate caused by the transaction costs is reflected in the interest expense. c. the transaction costs are recorded separately as an asset. d. the increase in the effective interest rate caused by the transaction costs is reflected in the interest expense.