RSM320H1 Study Guide - Final Guide: Contingent Liability, Deferred Tax, Current Liability
Document Summary
Financial liabilities is any liability that is a contractual obligation to deliver cash or other financial assets to another entity or to exchange financial assets or financial liability under conditions that are potentially unfavourable to the entity. After acquisition, accounted for at their amortized cost. Transition costs that are direct result of issue are netted against its original fair value or recognized in net income at fair value if after acquisition. Short term liabilities are accounted for on practical grounds at maturity value. Aspe measure in a variety of ways depending on the specific liability. Ifrs, non-financial liabilities are measured initially and at each subsequent reporting date at the best estimate of the amount the entity would rationally pay at the end balance sheet date to settle the present obligation. Usually the present value of obligation measured at the expected value or probability- weighted average of the range of possible outcomes.
