Purwanto Gozali (02312132) Endah Puspitasari (023121065) 1. The article states that the US standard setter FASB requires companies to record a provision in relation to environmental cost of retiring assets (to reserve environmental liabilities) if its fair value could be reasonably estimated. How do you think companies would go about estimating such a provision? Estimation (or estimating) is the process of finding an estimate‚ or approximation‚ which is a value that is usable for some
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Current Liabilities Current liabilities are defined as: “Debts due to be paid with cash or with goods and services within one year‚ or within the entity’s operating cycle if the cycle is longer than a year.” (Hongren‚ Harrison & Oliver‚ 2012) These liabilities fit into three categories: Current liabilities of known amount; current liabilities that must be estimated; and contingent liabilities. According to the matching principle of accounting‚ expenses and revenues need to be reported during
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Q i) Expalin in detail five basic accounts along with their types and examples Five basic Acounts 1. Assets 2. Liabilities 3. Capital/Owner Equity 4. Revenue/Income 5. Expenses Assets Assets are the resources owened by a business and are expected to give benefit for future operation Example: If you buy a land and it will give benefit in the future operation then it is your asset . if the land which you buy And in future you have to sell only then this is not your asset. If you built
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temporary difference is the difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable amounts (increase in taxable income) or deductible amounts (decrease in taxable income) in future years when the reported amount of the asset is recovered or when the reported amount of the liability is settled. When the book amount of an asset or liability differs from the tax basis as a result of a temporary difference‚ the future
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company management‚ suppliers‚ some customers‚ competitors‚ government agencies‚ and labor unions. I We will begin our explanation of the accounting balance sheet with its major components‚ elements‚ or major categories: * Assets * Liabilities * Owner’s (Stockholders’) Equity ASSETS Assets are things that the company owns. They are the resources of the company that have been acquired through transactions‚ and have future economic value that can be measured and expressed in dollars
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Financial Analysis/ Final Project XACC/280 Eden Lord Financial Analysis‚ Final Project Based upon my knowledge learned on financial reporting‚ I had compared to companies reporting statistics. The two companies in comparison are PepsiCo Incorperated and The Coca-Cola Company in which both have reported annual statistics for 2004 and 2005. During my comparison of net incomes‚ gross expenses‚ stock statistics‚ and assets accumulations‚ I have suggested some strategies for each business to take into
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| The balance sheet at December 31‚ 2011‚ for Nevada Harvester Corporation includes the liabilities listed below: Required: 1. | | Determine the amount that can be excluded from classification as a current liability (that is‚ reported as a noncurrent liability) for each. Explain the reasoning behind your classifications. | | | | Solution: 1.a. A Zero dollars will be excluded from current liability because it is callable within year. Even if the debt is not expected to be called‚ there
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CHAPTER 13 NON-FINANCIAL AND Current liabilitieS SOLUTIONS TO EXERCISES EXERCISE 13-1 (10-15 minutes) (a) Classifications on balance sheet prepared under ASPE: 1. Current liability; financial liability. 2. Current asset. 3. Current liability or long-term liability depending on term of warranty; not a financial liability. 4. Current liability; financial liability. A company would have an obligation to pay cash to the bank for any overdraft and this would result from the contractual
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CURRENT LIABILITIES & CONTINGENCIES ECON 136A REFRESHER What is a liability? Present (not necessarily current) unavoidable obligation; Result of a past transaction; Chapter 13 What makes a liability current? Conversion in one year or operating cycle‚ whichever is longer Current liabilities are not recorded at their present value as they “turn” soon enough that there is no material difference. Bob Anderson‚ UCSB 2004 13-1 13-2 Bob Anderson‚ 2004 07:35 136A Concepts Notes Payable
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economic characteristics. These broad classes are termed the elements of financial statements. Elements of the financial statements include assets‚ liabilities‚ equity‚ income and expenses. The first three elements relate to the statement of financial position whereas the latter two relate to the income statement. For example‚ assets and liabilities may be classified by their nature or function in the business of the enterprise in order to display information in the manner most useful to users for
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