ACCT 1A Lecture Notes - Lecture 13: Limited Liability Partnership, Legal Personality, Financial Statement
Document Summary
Post-employee benefits are a special type of employee benefits that do not become payable until after a person has completed employment with the company. A company"s obligations for these future benefits must be recorded as liabilities on its balance sheet, split into current and long-term portions where applicable. A corporation is a business entity formed under federal or provincial law. The federal or provincial government grants articles of incorporation, which consist of documents giving the governing body"s permission to form a corporation. A corporation is a distinct entity, an artificial person that exists part from its owners, the shareholders. The corporation has many of the same rights as a person. Corporations have continuous lives regardless of changes in their ownership. The shareholders of a corporation may transfer shares as they wish. They may sell or trade the shares to another person, give them away, bequeath them in a will, or dispose of them in any other way.
