ADMS 3595 Lecture Notes - Current Liability, Financial Statement, Discount Window

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Lone-term liabilities --- more than one year: financial liabilities. Financial liability is any liability that is a contractual obligation to either: deliver cash or other financial assets to another party, or to exchange financial instruments with another party under conditions that are potentially unfavourable, financial vs. Financial: initially measured at fair value, subsequent measurement generally at amortized cost (except those held for trading, such as derivatives, where fair value is used) 10,000: notes payable, notes payable may be classified as either current or long-term, notes payable may be interest-bearing or zero- interest-bearing (non-interest-bearing) e. g. jan. 1/2013 borrows ,000 to company a. Pv of cash received is ,154 @ bank discount rate. * if not tell the year-end date, both methods are ok. If tell the year-end date, use method ii. * always credit current portion until write off: short-term debt expected to be refinanced. * if the company going to pay the loan within one year, then treat as current.

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