中级会计西三一教材第十一章.pptxVIP

Chapter 11;A. INTRODUCTION;B. DEFINITION, CLASSIFICATION, AND MEASUREMENT OF LIABILITIES (L.O. 11-1);1. Liabilities de?ned;2. Recognition ;3. Financial and non-financial liabilities ;Financial liabilities : - Initially measured at fair value - Subsequently measured at amortized cost  - If held for trading, such as derivatives, then measured at fair value Non-financial liabilities - measured using best estimate at balance sheet date;Why distinguish between financial and non-financial liabilities?;4. Current versus non-current liabilities;5. Measurement;C. CURRENT LIABILITIES (L.O. 11-2) ; 1. Trade Payables (Accounts Payable);Gross vs. Net Method of RecordingTrade Payables;2: Common Non-trade Payables;a: Sales Taxes Payable;Sales Taxes Payable (continued);b: Income Taxes Payable;c: Dividends Payable;d: Royalty Fees Payable;3. Notes payable;4. Credit (Loan) Facilities;Warranty - a guarantee that products will be free from defects for a speci?ed period, agreeing to ?x or replace them if they are faulty Two types Manufacturers (included in product price) Sold separately (manufacturer or another party) ;Warranty Embedded in Product Results in a provision and an expense (year of sale) Measured using expected value techniques Subsequent claims charged to the provision Offset to inventory, labour or other expenses to satisfy the claim Can extend beyond a year, but all charged in sale year Liability may be current or non-current;Warranty Embedded in Sales Price;At time of sale: Dr. Cash xxx Cr. Sales Revenue xxx Cr. Unearned Warranty Revenue xxx ;Arise from collection of assets not yet earned Also called: Unearned revenue; Deposits May arise from customer loyalty programs Can have current/noncurrent components When “earned” unearned amount becomes revenue; When cash is received: Dr. Cash xxx Cr. Deferred Revenue xxx When revenue is earned (service