INTERMEDIATE ACCOUNTING 2
are present obligation to transfer economic resource resulting from past event.
Liability
general: present value
Current: face amount
Non-current: (initially) present value
(subsequently) amortized cost
Measurement of Liability
expects to settle the liability within the entity's operating cycle.
Current Liability (criteria)
Operating Cycle
Cash, Raw Materials, Work in Process, Finish Goods, Accounts Receivable
The entity holds the liability primarily for the
Purpose of trading
The liability is due to be settled within 12 months after the
Reporting period
expects to settle the liability within the entity's
Operating cycle
The entity does not have an __________to defer the settlement of the liability for at least 12 months after the reporting period.
Unconditional right
Estimate Liabilities
Deferred Revenue, Gift Certificate, Matching Principles, Bonus
can classified as current or non current
Deferred Revenue
Revenue & Expense
Matching Principle
For holder: Asset
For issuer: Asset
Gift Certificate
4 ways of variation to computing bonus
1. Income before bonus and before tax
2. Income after bonus but before tax
3. Income after bonus and after tax
4. Incime after tax but before bonus
income before bonus and before tax, income after bonus but before tax, income after bonus and after tax, income after tax but before bonus