LIABILITIES F2F SESSION

Liability

• present obligation - past event - oblig event - legal and constructive

• outflow of resources

• 4 criteria

  • if nag arise liability from transaction

• current liability - held for trading, settled when 12 months

• trade - normal business operation

  • kahit bayaran 24 months, as long as trade, current pa rin

• non-trade - out of business

• refinancing - uutang ka para mapagbayad sa utang - nontrade na to

• as long as bank allows u to extend dls of payment di siya current

• if its not current, noncurrent siya

• notes payable - kung paano minemeasure accounting ng receivables

• unearned income - deferred income / advanced collection

• dividends- cash, liability

  • share dividend - dividend payable NOT liability; it is equity.

    • hindi outflow ng resources, binibigay mo OWNERSHIP, not resources/assets

• provision liability- uncertain timing and amount; probable and measurable (if 1 condition is unmet, its a contingent liability)

  • determine probability of outcome - probably if more than 50% chance of something happening

  • ex. warranty

• gift certificate - unearned income; di pa nakukuha goods