After studying this chapter, you should be able to: Understand the importance of non-financial and current liabilities from a business perspective; define liabilities, distinguish financial liabilities from other liabilities, and identify how they are measured; define current liabilities and identify and account for common types of current liabilities;. | 1 CHAPTER 13: NON-FINANCIAL AND CURRENT LIABILITIES 2 CHAPTER 13: Non-Financial and Current Liabilities After studying this chapter, you should be able to: Understand the importance of non-financial and current liabilities from a business perspective. Define liabilities, distinguish financial liabilities from other liabilities, and identify how they are measured. Define current liabilities and identify and account for common types of current liabilities. Identify and account for the major types of employee-related liabilities. Explain the recognition, measurement, and disclosure requirements for decommissioning and restoration obligations. Explain the issues and account for unearned revenues. Explain the issues and account for product guarantees and other customer program obligations. Explain and account for contingencies and uncertain commitments, and identify the accounting and reporting requirements for guarantees and commitments. 9. Indicate how non-financial and current liabilities are presented and analyzed. 10. Identify differences in accounting between IFRS and ASPE and what changes are expected in the near future. 3 3 Understanding Non-Financial and Current Liabilities The asset and liability approach governs the recognition of accounting elements Volume 2 of this textbook takes a closer look at liabilities in general as well as specific types of common liabilities It is important for businesses to properly account for liabilities because it useful for cash flow management 4 LO1 Understand the importance of non-financial and current liabilities from a business perspective. 4 Current Definition and Characteristics IFRS and ASPE currently define a liability as: An obligation of an enterprise Arising from past transactions or events The settlement of which may result in the transfer or use of assets or provision of services, or other yielding of economic benefits in the future 5 5 LO2 Define liabilities, distinguish financial liabilities from other . | 1 CHAPTER 13: NON-FINANCIAL AND CURRENT LIABILITIES 2 CHAPTER 13: Non-Financial and Current Liabilities After studying this chapter, you should be able to: Understand the importance of non-financial and current liabilities from a business perspective. Define liabilities, distinguish financial liabilities from other liabilities, and identify how they are measured. Define current liabilities and identify and account for common types of current liabilities. Identify and account for the major types of employee-related liabilities. Explain the recognition, measurement, and disclosure requirements for decommissioning and restoration obligations. Explain the issues and account for unearned revenues. Explain the issues and account for product guarantees and other customer program obligations. Explain and account for contingencies and uncertain commitments, and identify the accounting and reporting requirements for guarantees and commitments. 9. Indicate how non-financial and current .
