Liabilities: Difference between revisions
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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]] | ||
| Line 26: | Line 28: | ||
* [[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
- Accrual
- Assets
- Balance
- Balance sheet
- Capital
- Compound instrument
- Credit balance
- Disaggregation
- Discharge
- Equity
- Exemption clause
- Fair value
- Financial liability
- Financial reporting
- Indemnity clause
- Interest gap
- Liabilities and equity
- Mismatch
- Net assets
- Net worth
- Off balance sheet finance
- Offset
- Overdraft
- Provision
- Reporting entity
- Trade payables
- Wealth
