Beechy6eVol2 SM Ch12
Chapter 12: Financial Liabilities and Provisions
Case 12-1 Prescriptions Depot Limited 12-2 Camani Corporation Suggested Time Technical Review TR12-1 Provision—Measurement 10 TR12-2 Provision—Warranty 5 TR12-3 Note Payable 5 TR12-4 Discounting—Note Payable 10 TR12-5 Discounting—Provision 10 Assignment A12-1 Common Financial Liabilities 10 A12-2 Common Financial Liabilities—Taxes 20 A12-3 Common Financial Liabilities—Taxes 20 A12-4 Foreign Currency Payables (*W) 10 A12-5 Common Financial Liabilities & Foreign Currency 25 A12-6 Provisions 20 A12-7 Provisions (*W) 20 A12-8 Provisions 20 A12-9 Provision Measurement 15 A12-10 Provision Measurement 15 A12-11 Provisions—Compensated Absences 15 A12-12 Provisions—Warranty 15 A12-13 Provisions—Warranty 20 A12-14 Provisions—Warranty 25 A12-15 Discounting—No-Interest Note 25 A12-16 Discounting—Low-Interest Note (*W) 20 A12-17 Discounting—Low-Interest Note 20 A12-18 Discounting—Provision 15 A12-19 Discounting—Provision 25 A12-20 Discounting—Provision 25 A12-21 Classification and Statement of Cash Flows 20 A12-22 Statement of Cash Flows 20 A12-23 Liabilities—ASPE 10 A12-24 Liabilities—ASPE (*W) 20 A12-25 Liabilities—ASPE 20
*W The solution to this assignment is on the text website, Connect. The solution is marked WEB.
Questions
1. The definition of a liability embodies a future sacrifice of assets or services, a present obligation, as a result of a past transaction or event.
2. A financial liability exists when one company has a liability and another entity has a financial asset. Non-financial liabilities are all other liabilities; no corresponding financial asset arises on the books of the counter-party. Examples include liabilities for environmental remediation, lawsuits and warranties. [Other examples are acceptable.] Liabilities must be probable of payment (>50% probability) to be recognized. Amounts are
Case 12-1 Prescriptions Depot Limited 12-2 Camani Corporation Suggested Time Technical Review TR12-1 Provision—Measurement 10 TR12-2 Provision—Warranty 5 TR12-3 Note Payable 5 TR12-4 Discounting—Note Payable 10 TR12-5 Discounting—Provision 10 Assignment A12-1 Common Financial Liabilities 10 A12-2 Common Financial Liabilities—Taxes 20 A12-3 Common Financial Liabilities—Taxes 20 A12-4 Foreign Currency Payables (*W) 10 A12-5 Common Financial Liabilities & Foreign Currency 25 A12-6 Provisions 20 A12-7 Provisions (*W) 20 A12-8 Provisions 20 A12-9 Provision Measurement 15 A12-10 Provision Measurement 15 A12-11 Provisions—Compensated Absences 15 A12-12 Provisions—Warranty 15 A12-13 Provisions—Warranty 20 A12-14 Provisions—Warranty 25 A12-15 Discounting—No-Interest Note 25 A12-16 Discounting—Low-Interest Note (*W) 20 A12-17 Discounting—Low-Interest Note 20 A12-18 Discounting—Provision 15 A12-19 Discounting—Provision 25 A12-20 Discounting—Provision 25 A12-21 Classification and Statement of Cash Flows 20 A12-22 Statement of Cash Flows 20 A12-23 Liabilities—ASPE 10 A12-24 Liabilities—ASPE (*W) 20 A12-25 Liabilities—ASPE 20
*W The solution to this assignment is on the text website, Connect. The solution is marked WEB.
Questions
1. The definition of a liability embodies a future sacrifice of assets or services, a present obligation, as a result of a past transaction or event.
2. A financial liability exists when one company has a liability and another entity has a financial asset. Non-financial liabilities are all other liabilities; no corresponding financial asset arises on the books of the counter-party. Examples include liabilities for environmental remediation, lawsuits and warranties. [Other examples are acceptable.] Liabilities must be probable of payment (>50% probability) to be recognized. Amounts are