ACTG 2011 Study Guide - Final Guide: Deferred Income, Financial Statement
25 Mar 2016
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Commitment is a contractual agreement to enter into a future transacion. Executory contracts are agreements commiing an enity to future purchases of goods and services > not considered liability under ifrs. If recognized, debit to asset and a create to liability. Subsequent event is an economic event that occurs ater an enity"s year-end but before the inancial statements are released to stakeholder"s. Events that provide informaion about circumstance tat existed at the year-end. > informaion used to revise the numbers in the statements. Events that happened ater the end of the period. > only disclosed on the notes; aren"t adjusted in the inancial statements. Ater-tax cost of borrowing is the interest rate an enity pays ater taking into consideraion the savings that come from being able to deduct in the calculaion of taxable income. Ater-tax cost of borrowing = state interest rate x (1-tax rate) Debt-to-equity raio anaylzes the risk of the company.
