课件FAChap013PPT

CURRENTLIABILITIESANDCONTINGENCIES,Chapter13,2013TheMcGraw-HillCompanies,Inc.,CharacteristicsofLiabilities,.Resultinanoutflowofresourcesinthefuture.,.Arisingfrompastevents.,PresentObligation.,2013TheMcGraw-HillCompanies,Inc.,WhatisaCurrentLiability?,LIABILITIES,Long-termLiabilities,Othersituations:Fortradingpurposes,ordoesnothavetherighttodefersettlementforatleast12months,CurrentLiabilities,Obligationspayablewithinoneyearoroneoperatingcycle,whicheverislonger.,2013TheMcGraw-HillCompanies,Inc.,CurrentLiabilities,2013TheMcGraw-HillCompanies,Inc.,OpenAccountsandNotes,AccountsPayableObligationstosuppliersforgoodspurchasedonopenaccount.TradeNotesPayableSimilartoaccountspayable,butrecognizedbyawrittenpromissorynote.Short-termNotesPayableCashborrowedfromthebankandrecognizedbyapromissorynote.CreditlinesPrearrangedagreementswithabankthatallowacompanytoborrowcashwithoutfollowingnormalloanproceduresandpaperwork.,2013TheMcGraw-HillCompanies,Inc.,Interest,Interestonnotesiscalculatedasfollows:,Amountborrowed,Interestrateisalwaysstatedasanannualrate.,Interestowedisadjustedfortheportionoftheyearthatthefaceamountisoutstanding.,2013TheMcGraw-HillCompanies,Inc.,Interest-BearingNotes,OnSeptember1,EagleBoatsborrows$80,000fromCookeBank.Thenoteisduein6monthsandhasastatedinterestrateof9%.RecordtheborrowingonSeptember1.,2013TheMcGraw-HillCompanies,Inc.,HowmuchinterestisduetoCookeBankatyear-end,onDecember31?a.$2,400b.$3,600c.$7,200d.$87,200,Interest-BearingNotes,2013TheMcGraw-HillCompanies,Inc.,Interest-BearingNotes,AssumeEagleBoatsyear-endisDecember31.Recordthenecessaryadjustmentatyear-end.,2013TheMcGraw-HillCompanies,Inc.,Interest-bearingNotes,AssumeEagleBoatsyear-endisDecember31.RecordthenecessaryjournalentrywhenthenotematuresonFebruary28.,2013TheMcGraw-HillCompanies,Inc.,Noninterest-BearingNotes,Noteswithoutastatedinterestratecarryanimplicit,oreffectiverate.Theprincipalofthenoteincludestheamountborrowedandtheinterest.,2013TheMcGraw-HillCompanies,Inc.,OnMay1,Batter-UpLtd.issuedaone-year,noninterest-bearingnotewithafaceamountof$10,600inexchangeforequipmentvaluedat$10,000.HowmuchinterestwillBatter-Uppayonthenote?,Interest=FaceAmount-AmountBorrowed=$10,600-$10,000=$600,Noninterest-BearingNotes,2013TheMcGraw-HillCompanies,Inc.,Noninterest-BearingNotes,OnMay1,Batter-UpLtd.issuedaone-year,noninterest-bearingnotewithafaceamountof$10,600inexchangeforequipmentvaluedat$10,000.Whatistheeffectiveinterestrateonthenote?,2013TheMcGraw-HillCompanies,Inc.,CommercialPaper,Commercialpaperisatermusedforunsecurednotesissuedinminimumdenominationsofsay$25,000withmaturitiesusuallyrangingfrom30daysto270days.,Normally,commercialpaperisissueddirectlytothelenderandisbackedbyalineofcreditwithabank.,Commercialpaperisrecordedinthesamemannerasnotespayable.,2013TheMcGraw-HillCompanies,Inc.,Salaries,Commissions,andBonuses,Compensationexpensessuchassalaries,commissions,andbonusesareliabilitiesatthefinancialreportingdateifearnedbutunpaid.,Theseaccruedexpenses/accruedliabilitiesarerecordedwithanadjustingentrypriortopreparingfinancialstatements.,2013TheMcGraw-HillCompanies,Inc.,Compensatedabsences,2013TheMcGraw-HillCompanies,Inc.,LiabilitiesfromAdvanceCollections,Deposits(RefundableorNon-Refundable)AdvancesfromCustomersCollectionsforThirdParties,2013TheMcGraw-HillCompanies,Inc.,ACloserLookattheCurrentandNoncurrentClassification,TheclassificationoffinancialliabilitiesrequirestheconsiderationofThetermsofcontractincludingthedateofsettlement,Therightofthecreditortocallbacktheloan,Therightoftheborrowertorescheduletheloanrepayment,andTheprovisionofagraceperiodintheeventthattheborrowerbreachesacovenantinthedebtagreementetc.,2013TheMcGraw-HillCompanies,Inc.,ACloserLookattheCurrentandNoncurrentClassification,Currentmaturitiesoflong-termobligationsareusuallyreclassifiedandreportedascurrentliabilitiesiftheyarepayablewithintheupcomingyear(oroperatingcycle,iflongerthanayear).,Debtthatiscallable(dueondemand)bythelenderinthecomingyear,(oroperatingcycle,iflongerthanayear)shouldbeclassifiedasacurrentliability,evenifthedebtisnotexpectedtobecalled.,2013TheMcGraw-HillCompanies,Inc.,ACloserLookattheCurrentandNoncurrentClassification,Conversely,eveniftheobligationisduewithinashorterperiod,thelong-termclassificationappliesiftheborrowingentityexpectsandhasthediscretiontorefinanceorrolloveranobligationforatleast12monthsafterthereportingperiod.,2013TheMcGraw-HillCompanies,Inc.,Short-TermObligationsExpectedtobeRefinanced,Acompanymayreclassifyashort-termliabilityaslong-termonlyiftwoconditionsaremet:,Ithastheintenttorefinanceonalong-termbasis.,Ithasdemonstratedtheabilitytorefinance.,and,2013TheMcGraw-HillCompanies,Inc.,Theabilitytorefinanceisanunconditionalrightatthefinancialyear-endgrantedbythelendertodefersettlementforatleasttwelvemonths.Anditcanbedemonstratedbyan:existingrefinancingagreement,oractualrefinancingatthefinancialyear-end,Short-TermObligationsExpectedtobeRefinanced,TherearediscussionsbetweenIASBandFASBtochangethedefinitionof“shortterm”tomean“withinoneyear”,regardlessofthelengthofthereportingperiod.,2013TheMcGraw-HillCompanies,Inc.,ContingentLiabilities,Acontingentliabilityisrecordedfor(1)apossibleobligation;or(2)apresentobligationwithfutureoutflowsthatarenotprobableorcannotbereliablymeasured.,Theuncertaintiesrelateto:TheexistenceoftheobligationorTheprobability/amountofoutflow,2013TheMcGraw-HillCompanies,Inc.,Contingencies,Acontingentliabilityisneveraccrued,butisonlydisclosedinthefootnotestothefinancialstatements:Thereportingentitymust:Describethenatureofthecontingentliability,andProvideanestimateofthefinancialeffect,AndifpracticableIndicatetheuncertaintiesrelatingtotheamountandtimingoftheoutflows,andStatethepossibilityofanyreimbursement.Notethatthecauseoftheuncertaintymustoccurbeforethefinancialstatementdate.,2013TheMcGraw-HillCompanies,Inc.,Provisions,Aprovisionisaliabilityasithasallthethreecharacteristicsofaone.(1)pastobligatingeventhasoccurred(2)presentobligationthatleadstoa(3)futureoutflowofbenefits.,2013TheMcGraw-HillCompanies,Inc.,Provisions,2013TheMcGraw-HillCompanies,Inc.,Provisions,2013TheMcGraw-HillCompanies,Inc.,OnerousContracts,2013TheMcGraw-HillCompanies,Inc.,ProductWarranties,Productwarrantiesinevitablyentailcosts.Likeotherprovisions,theamountofthosecostscanbereasonablyestimatedusingcommonlyavailableestimationtechniques.Theestimaterequiresthefollowingentry:,2013TheMcGraw-HillCompanies,Inc.,ExtendedWarranties,Extendedwarrantiesaresoldseparatelyfromtheproduct.Therelatedrevenueisnotearneduntil:Claimsaremadeagainsttheextendedwarranty,orTheextendedwarrantyperiodexpires(normallyrecognizedonastraight-linebasisovertheperiod).,2013TheMcGraw-HillCompanies,Inc.,LitigationClaims,Themajorityofmediumandlarge-sizecorporationsannuallyreportcontingentliabilitiesduetolitigation.Themostcommondisclosureisanotetothefinancialstatements.,2013TheMcGraw-HillCompanies,Inc.,SubsequentEvents,Whenthecauseofalosscontingencyoccursbeforetheyear-end,anadjustingeventbeforefinancialstatementsareissuedcanbeusedtodeterminehowthecontingencyisreported.,Ifaneventgivingrisetoalosscontingencyoccursaftertheyear-end,aliabilityshouldnotbeaccrued.Instead,adisclosurenoteshouldbemade,2013TheMcGraw-HillCompanies,Inc.,UnassertedClaimsandAssessments,Q1.Isaclaimorassessmentprobable?,No,Yes,Nodisclosureneeded,Unassertedclaim,Q2.Evaluate(a)thelikelihoodofanunfavorableoutcomeand(b)whetherthedollaramountcanbeestimated.,IAS37doesnotdealspecificallywiththeseclaims;thisprocessisfromU.S.GAAP,2013TheMcGraw-HillCompanies,Inc.,ContingentAssets,Asageneralprinciple,weneverrecordcontingentassets.,Notethatthewehavetorecordliabilitiesevenifthelikelihoodis“probable”andnotcertain.,2013TheMcGraw-HillCompanies,Inc.,Employersincurseveralexpensesandliabilitiesfromhavingemployees.,Appendix13Payroll-RelatedLiabilities,2013TheMcGraw-HillCompanies,Inc.,SocialSecurityTaxes,MedicalInsurance,NationalIncomeTax,StateandLocalIncomeTaxes,VoluntaryDeductions,GrossPay,Payroll-RelatedLiabilities,2013TheMcGraw-HillCompanies,Inc.,Amountswithhelddependoneachcountryslaws,theemployeesearnings,taxrates,andnumberofwithholdingallowances.,Employersmustpaythetaxeswithheldfromemployeesgrosspaytotheappropriategovernmentagency.,Nationa