Expense and Liabilities: Difference between pages

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1.  
1. ''Financial reporting''.  


A cost necessarily incurred in performing duties as an employee or independent professional.
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, the provision of services or other yielding of economic benefits in the future.


Examples include overdrafts, trade payables, accruals and provisions.


2.  
Liabilities are represented in the balance sheet by credit balances.


More generally, any cost necessarily incurred in order to do something.


2.


3. ''Financial reporting - noun.''
More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).
 
An item treated as a cost in the current reporting period, when preparing an income statement.
 
 
4. ''Financial reporting - verb.''
 
To account for an item as an expense in the current reporting period, rather than capitalising it.
 
Capitalising an item of expenditure ''defers'' the accounting recognition of the expense into later reporting periods.




==See also==
== See also ==
*[[Accrual]]
* [[Accrual]]
*[[Accrued expense]]
* [[Assets]]
*[[Capitalise]]
* [[Balance sheet]]
*[[Expenditure]]
* [[Capital]]
*[[Expenses]]
* [[Compound instrument]]
*[[Financial reporting]]
* [[Credit balance]]
*[[Income statement]]
* [[Disaggregation]]
*[[Recognition]]
* [[Equity]]
*[[Research & development]]
* [[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]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 13:59, 4 August 2019

1. Financial reporting.

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, 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.

More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).


See also

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