Liabilities

From ACT Wiki
Revision as of 09:44, 26 January 2023 by imported>Doug Williamson (Expand definition.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

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