In this section, we’ll explain the accounting of liabilities. In Financial Instruments section, you can find the explanation of long-term…
Liabilities, provisions, and contingent liabilities are closely related terms and can easily be confused with one another. In this post,…
Contingency means a possible event that can happen in the future but the happening of that event cannot be predicted…
When a company sets up a long-term asset such as an oil rig, a power plant or a large processing…
When a company sets up a long-term asset such as an oil rig or a processing plant, it assumes an…
A contract become onerous if the unavoidable costs related to the contract exceed the expected benefits expected to be received…
Warranty is often given by companies selling certain products such as electronic items for e.g., cell phones, laptops etc. Similarly,…
As defined by IAS 37, a provision is a liability of uncertain timing or amount. To understand this definition, one…
To ensure the completeness of liabilities, auditors often perform a test called search for unrecorded liabilities. However, accountants preparing the…
Accrued liabilities represent an entity’s obligations related to expenses that have been incurred but not yet paid. But why are…