Define current liabilities.
Accrued expenses
Interest-bearing vs non-interest bearing current liabilities
Ind AS 1
- A current liability is a financial obligation that must be repaid within one year of the date that a company’s balance sheet was prepared, or within the operating cycle.
- Expenses that have been incurred but that have not yet been due for payment.
- Interest-bearing = bank overdrafts or notes payable
- Ind AS 1 requires that presentation of assets and liabilities in the balance sheet be based on current and non-current classification
Define long-term liabilities
senior debt and subordinated debt.
baloon vs bullet repayment of loans.
inance lease (or capital lease)
deffered taxes
- A long-term liability is a debt that matures more than one year after the date of a business’s most recent balance sheet.
- Lower priority debt obligations are subordinate to the senior debt (high priority)
- bullet = Only interest on the debt is paid during its life with the principal repaid in a single payment at the end of the loan
- A financial lease is a lease that lets an entity borrow an asset for a long period of time, such that the length of the lease is essentially equal to the life of the asset taken on lease
Zuletzt geändertvor 2 Jahren