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In accounting, contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of an uncertain future event [1] such as the outcome of a pending lawsuit. These liabilities are not recorded in a company's accounts and shown in the balance sheet when both probable and reasonably estimable as 'contingency' or ...
It sets out the accounting and disclosure requirements for provisions, contingent liabilities and contingent assets, with several exceptions, [1] establishing the important principle that a provision is to be recognized only when the entity has a liability. [2]
The recording of the liability in the entity's balance sheet is matched to an appropriate expense account on the entity's income statement. In U.S. Generally Accepted Accounting Principles (U.S. GAAP), a provision is an expense. Thus, "Provision for Income Taxes" is an expense in U.S. GAAP but a liability in IFRS.
Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU. Liabilities of sectors of USA economy, 1945-2017, based on flow of funds statistics of the Federal Reserve System. Liabilities are debts and obligations of the business they represent as creditor's claim on business assets.
Whilst the standard on provisions, IAS 37, prohibits the recognition of a provision for contingent liabilities, [23] this prohibition is not applicable to the accounting for contingent liabilities in a business combination. In that case the acquirer shall recognise a contingent liability even if it is not probable that an outflow of resources ...
Accrued expenses and other current liabilities 75,085 63,901 Convertible debt, current 42,640 51,180 Derivative liability, current — 860 Financing liability, current 3,604 3,200 Total current liabilities 202,344 184,447 Contingent earnout shares liability — 41 Operating lease liabilities, non-current 33,158 35,722 Derivative liability, non ...
Fair value measurement partially includes considerations of risk. Hedge accounting allows for limited aggregation of mutually offsetting risks. Cost accounting : Risks in the sense of unexpected resource consumption is accounted for by using normalised costs for those events (expected value).
It exited its fiscal Q1 with total liabilities of $7.2 billion, $3.1 billion of which was long-term debt. Contrast this with its total assets at that time of $7.9 billion.