Letters of representation and Liabilities: Difference between pages
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1. ''Financial reporting - balance sheet''. | |||
In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in: | |||
* The transfer or use of assets, for example payments of money | |||
* The provision of services or | |||
* Other yielding of economic benefits in the future. | |||
Examples include overdrafts, trade payables, accruals and provisions. | |||
Liabilities are represented in the balance sheet by credit balances. | |||
2. ''Lending - borrowing.'' | |||
More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity). | |||
== See also == | == See also == | ||
* [[ | * [[Accrual]] | ||
* [[Assets]] | |||
* [[Balance sheet]] | |||
* [[Capital]] | |||
* [[Compound instrument]] | |||
* [[Credit balance]] | |||
* [[Disaggregation]] | |||
* [[Equity]] | |||
* [[Exemption clause]] | |||
* [[Fair value]] | |||
* [[Financial liability]] | |||
* [[Financial reporting]] | |||
* [[Indemnity clause]] | |||
* [[Interest gap]] | |||
* [[Liabilities and equity]] | |||
* [[Mismatch]] | |||
* [[Net assets]] | |||
* [[Net worth]] | |||
* [[Off balance sheet finance]] | |||
* [[Offset]] | |||
* [[Overdraft]] | |||
* [[Provision]] | |||
* [[Reporting entity]] | |||
* [[Trade payables]] | |||
* [[Wealth]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 13:31, 17 July 2022
1. Financial reporting - balance sheet.
In financial reporting, liabilities are amounts or obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:
- The transfer or use of assets, for example payments of money
- The provision of services or
- Other yielding of economic benefits in the future.
Examples include overdrafts, trade payables, accruals and provisions.
Liabilities are represented in the balance sheet by credit balances.
2. Lending - borrowing.
More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).
See also
- Accrual
- Assets
- Balance sheet
- Capital
- Compound instrument
- Credit balance
- Disaggregation
- Equity
- Exemption clause
- Fair value
- Financial liability
- Financial reporting
- Indemnity clause
- Interest gap
- Liabilities and equity
- Mismatch
- Net assets
- Net worth
- Off balance sheet finance
- Offset
- Overdraft
- Provision
- Reporting entity
- Trade payables
- Wealth
