ACCG101 Lecture Notes - Lecture 4: Promissory Note, Employee Benefits, Interest Expense

• School: Macquarie University
• Department: Accounting and Corporate Governance
• Course: ACCG101
• Professor: Rajni MALA

Document Summary

924 5: describe when liabilities are recognised (pp. 925 6: explain the nature of provisions and contingent liabilities (pp. 926 : explain the nature of the major categories of current liabilities, and how to account for them (pp. 5: analyse liabilities (ratios) for decision-making purposes (pp. Definition: present obligation to external party, obligation must have resulted from past events future outflow of resources embodying economic benefits. Recognition: probable that future economic benefits will flow from the entity, cost or value can be reliably measured. Provisions are a type of liabilities for which the amount or timing is uncertain. Future expected outlays where no present obligation exists are excluded. Contingent liabilities are possible obligations arising from a past event. Whether or not a liability exists depends on the occurrence (or non-occurrence) of an event, which is often beyond the control of the company. Evidenced by a bill of exchange of a promissory note. Two types trade bill and commercial bill.