AFM391 Study Guide - Winter 2018, Comprehensive Midterm Notes - Atomic-Force Microscopy, Balance Sheet, Accounting
12 Oct 2018
School
Department
Course
Professor
AFM391
MIDTERM EXAM
STUDY GUIDE
Fall 2018
INTRODUCTION
A.
Liailities ae oligatios to poide ash, othe assets, o seies to eteal paties•
The oligatio is a fiaial o o
-
fiaial liailit
○
The aket ate of iteest is diffeet fo that eoded i the loa douetatio
○
The aket ate of iteest has haged sie the liailit as iued
○
Thee is uetait aout the aout oed
○
The aout oed depeds upo the outoe of a futue eet
○
The oligatio is paale i a foeig ue
○
Ma fatos a affet the alue of the idetedess •
DEFINITION, CLASSIFICATION, AND MEASUREMENT OF LIABILITIES
B.
Liailities defied
.
A liailit is a peset oligatio of the etit aisig fo past eets, the settleet of hih is
epeted to esult i a outflo fo the etit of esoue eodig eooi eefits
•
e.g. if I epai poduts ithi the aat peiod ut also afte the aat peiod to
aitai good ustoe elatios
○
Peset oligatios ae oall legall efoeale ut a also e ostutie •
Reogitio
.
Although ou do ot ko ho uh to pa fo aat, e still eod a liailit fo the
estiated ost
○
Provisio is the IFRS teiolog used to efe to liailities that hae soe uetait ith
espet to the tiig o aout of paet. All poisios ae liailities
○
IAS suggests that it ould e ae that a eliale estiate aot e otaied
•
Fiaial ad o
-
fiaial liailities
.
e.g. loa fo a ak
○
Fiaial liaility
is a otatual oligatio to delie ash o othe fiaial assets to aothe
pat
•
Usuall settled though delie of goods o seies
○
e.g. agazies outiel sell susiptio to ustoes peiodiall poidig goods
athe tha paig ash o poidig a fiaial asset
○
e.g. aaties
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e.g. ioe taes paale as it is ot otatual i atue
○
No
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fiaial liailit ae oligatios that eet the iteia fo a liailit ut ae ot fiaial
liailities
•
Soe Fiaial liailities ae easued at fai alue athe tha aotized ost
•
Curret vs. o-urret liailities.
If it does ot hae a uoditioal ight to defe settleet of the liailit fo at least
oths afte the epotig peiod
○
Cetai fiaial liailities lassified as FVPL ould also e epoted as uet liailities
○
Curret liailities epet to settle ithi oe ea of the alae sheet o the usiess's oal
opeatig le
•
Measureet.
Thee ae thee ategoies of idetedess fo easueet
•
Fiaial liailities at FVPL should e iitiall ad suseuetl easued at fai alue
a.
Aoutig stadads peit a uet oligatios to e eogized at thei atuig
fae alue eause it is had to deteie fai alue of shot
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te oligatios ad tie alue
of oe is iateial
○
Othe fiaial liailities ot FVPL should e iitiall easued at fai alue ius the tasatio
osts assoiated ith iuig the oligatio. Suseuet to the date of auisitio, fiaial
liailities ot FVPL ae easued at aotized ost usig the effetie iteest ethod
.
Waaties ae eoded at aageet's est estiate o settleet alue
○
Pepaid agazie sus ae alued at the iitiall eeied less the aout eaed to date
○
No
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fiaial liailities depeds o thei atue
.
A etit shall easue tade eeiales that do ot hae a sigifiat fiaial opoet at
thei tasatio pie
•
CURRENT LIABILITIES
C.
Cuet liailities aise fo past eets: the aouts to e paid is ko o a e easoal
estiated
•
Cotigeies aise fo past eets: the aout to e paid is deteied futue eets•
Fiaial guaatees aise fo otats peiousl eteed ito: the aout to e paid is
deteied futue eets
•
A etit geeall uses its
urret assets
suh as ash to pa its uet liailities he due
•
Trade payales
.
Also ko as aouts paale o tade aouts paale
•
Chapter 11
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Current Liailities and Contingenies
Jaua , : PM
AFM 391 Page 1
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Also ko as aouts paale o tade aouts paale
•
Due to poessig delas, ot all ioies ill e eeied efoe ea ed so etepise eeds to
eod a "aued liailit"
•
Tade paales ad aued liailities ae tpiall epoted as oe total o the alae sheet
•
To issues to e osideed:
•
Cut
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off: ea the ed of a epotig peiod esue that the oligatio is popel epoted
.
Goss esus et: he supplies offe disouts to eouage eal paets. Should a ue
epot a oligatio at full alue o the et aout of the disout? I theo it is ette to use
the et ethod ut i patie, ost people use the goss ethod hih a e justified o the
asis of ost
-
eefit ad ateialit fatos
.
See if people use the et ethod ad the disout is ot take, the ould hae to epot
"puhase disout lost" as a epese hih aageet do't like to do that. Looks ad.
•
Coo o-trade payales.
As the oligatios to pa sales ad ioe taes ae legislatie i atue, athe tha otatual,
the do ot fit the defiitio of a fiaial liailit set out i IAS
•
Sales taes paale
a.
Vedo is euied to hage the aout of ta o the tasatio ad eit the fuds to the
goeet at a late date
•
Soe plaes hage PST ad GST, ad soe just hage HST•
Taes ae ot uifol applied to all sales. Soe poduts ae eept fo PST o GST
○
Regulatios ad ates diffe i eah poie
○
Busiess a dedut GST ad HST paid o thei puhases fo the GST ad HST olleted
ad eit the et aout. But ith PST, usiess aot.
○
Soe issues ith sales taes ae:•
AFM 391 Page 2
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Document Summary
Lia(cid:271)ilities a(cid:396)e o(cid:271)ligatio(cid:374)s to p(cid:396)o(cid:448)ide (cid:272)ash, othe(cid:396) assets, o(cid:396) se(cid:396)(cid:448)i(cid:272)es to e(cid:454)te(cid:396)(cid:374)al pa(cid:396)ties. Ma(cid:374)(cid:455) fa(cid:272)to(cid:396)s (cid:272)a(cid:374) affe(cid:272)t the (cid:448)alue of the i(cid:374)de(cid:271)ted(cid:374)ess. The o(cid:271)ligatio(cid:374) is a fi(cid:374)a(cid:374)(cid:272)ial o(cid:396) (cid:374)o(cid:374)-fi(cid:374)a(cid:374)(cid:272)ial lia(cid:271)ilit(cid:455) The (cid:373)a(cid:396)ket (cid:396)ate of i(cid:374)te(cid:396)est is diffe(cid:396)e(cid:374)t f(cid:396)o(cid:373) that (cid:396)e(cid:272)o(cid:396)ded i(cid:374) the loa(cid:374) do(cid:272)u(cid:373)e(cid:374)tatio(cid:374) The (cid:373)a(cid:396)ket (cid:396)ate of i(cid:374)te(cid:396)est has (cid:272)ha(cid:374)ged si(cid:374)(cid:272)e the lia(cid:271)ilit(cid:455) (cid:449)as i(cid:374)(cid:272)u(cid:396)(cid:396)ed. The a(cid:373)ou(cid:374)t o(cid:449)ed depe(cid:374)ds upo(cid:374) the out(cid:272)o(cid:373)e of a futu(cid:396)e e(cid:448)e(cid:374)t. The o(cid:271)ligatio(cid:374) is pa(cid:455)a(cid:271)le i(cid:374) a fo(cid:396)eig(cid:374) (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)(cid:455) B. (cid:1005). (cid:1006). (cid:1007). (cid:1008). (cid:1009). a. (cid:271). (cid:272). A lia(cid:271)ilit(cid:455) is a p(cid:396)ese(cid:374)t o(cid:271)ligatio(cid:374) of the e(cid:374)tit(cid:455) a(cid:396)isi(cid:374)g f(cid:396)o(cid:373) past e(cid:448)e(cid:374)ts, the settle(cid:373)e(cid:374)t of (cid:449)hi(cid:272)h is e(cid:454)pe(cid:272)ted to (cid:396)esult i(cid:374) a(cid:374) outflo(cid:449) f(cid:396)o(cid:373) the e(cid:374)tit(cid:455) of (cid:396)esou(cid:396)(cid:272)e e(cid:373)(cid:271)od(cid:455)i(cid:374)g e(cid:272)o(cid:374)o(cid:373)i(cid:272) (cid:271)e(cid:374)efits. P(cid:396)ese(cid:374)t o(cid:271)ligatio(cid:374)s a(cid:396)e (cid:374)o(cid:396)(cid:373)all(cid:455) legall(cid:455) e(cid:374)fo(cid:396)(cid:272)ea(cid:271)le (cid:271)ut (cid:272)a(cid:374) also (cid:271)e (cid:272)o(cid:374)st(cid:396)u(cid:272)ti(cid:448)e e. g. if i (cid:396)epai(cid:396) p(cid:396)odu(cid:272)ts (cid:449)ithi(cid:374) the (cid:449)a(cid:396)(cid:396)a(cid:374)t(cid:455) pe(cid:396)iod (cid:271)ut also afte(cid:396) the (cid:449)a(cid:396)(cid:396)a(cid:374)t(cid:455) pe(cid:396)iod to (cid:373)ai(cid:374)tai(cid:374) good (cid:272)usto(cid:373)e(cid:396) (cid:396)elatio(cid:374)s.
