Liabilities: Difference between revisions

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imported>Doug Williamson
(Add example.)
imported>Doug Williamson
(Expand definition.)
 
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1. ''Financial reporting''.  
1. ''Financial reporting - balance sheet''.  


In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:
In financial reporting, liabilities are present amounts or present obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:


* The transfer or use of assets, for example payments of money
* The transfer or use of assets, for example payments of money
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Examples include overdrafts, trade payables, accruals and provisions.
Examples include overdrafts, trade payables, accruals and provisions.


Liabilities are represented in the balance sheet by credit balances.
Liabilities are represented in the balance sheet by credit balances.




2.  
2. ''Lending - borrowing.''


More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).
More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).
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* [[Accrual]]
* [[Accrual]]
* [[Assets]]
* [[Assets]]
* [[Balance]]
* [[Balance sheet]]
* [[Balance sheet]]
* [[Capital]]
* [[Capital]]
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* [[Credit balance]]
* [[Credit balance]]
* [[Disaggregation]]
* [[Disaggregation]]
* [[Discharge]]
* [[Equity]]
* [[Equity]]
* [[Exemption clause]]
* [[Exemption clause]]
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* [[Reporting entity]]
* [[Reporting entity]]
* [[Trade payables]]
* [[Trade payables]]
* [[Wealth]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 09:44, 26 January 2023

1. Financial reporting - balance sheet.

In financial reporting, liabilities are present amounts or present obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:

  • The transfer or use of assets, for example payments of money
  • The provision of services or
  • Other yielding of economic benefits in the future.


Examples include overdrafts, trade payables, accruals and provisions.


Liabilities are represented in the balance sheet by credit balances.


2. Lending - borrowing.

More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).


See also