Summary Ch 10 Current Liabilities - Financial Accounting with International Financial Reporting Standards - FAC2

Current Liabilities
Chapter Number Chapter 10



📖 Table of Contents

Outline
10.1 Accounting for Current Liabilities
Notes Payable
Issuing an interest-bearing note
Accrual of interest
Recording payment at Maturity
Value-Added and Sales Taxes Payable
Value-Added Taxes Payable
Sales Taxes Payable
Unearned Revenues
Recording the receiving of the advance payment
Recognising the Revenue
Salaries and Wages
Payroll Deductions
Current Maturities of Long-Term Debt
10.2 Reporting and Analyzing Current Liabilities
Reporting Uncertainty (Provisions)
Recognition of a Provision
Reporting a Provision
Reporting of Current Liabilities
Analysis of Current Liabilities




Current Liabilities 1

, 10.1 Accounting for Current Liabilities
The different types of current liabilities include:

notes payable

accounts payable

unearned revenues

accrued liabilities

taxes

salaries and wages

interest payable


Notes Payable
assume that First Hunan Bank agrees to lend ¥100,000 on September 1, 2020, if Yang
Enterprises signs a ¥100,000, 12%, four-month note maturing on January 1 (amounts in
thousands).

Issuing an interest-bearing note




Accrual of interest




Interest = Note Face Value ∗ Annual Interest Rate ∗ Time in Terms of 1 Year

4
¥100, 000 ∗ 0.12 ∗ = ¥4, 000
12
​




statement of financial position
→ notes payable ¥100,000




Current Liabilities 2