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(a)
Liability
Liability is an obligation of the business to pay to the creditors in future for the goods and services purchased on account or any for other financial benefit received. It can be current liability or a non-current liability depending upon the time period in which it is paid.
Current liability
Current liability is an obligation that the companies need to pay from the remaining current assets or creation of other current liabilities within a fiscal year or the operating cycle whichever is higher.
Notes payable
Notes Payable is a written promise to pay a certain amount on a future date, with certain percentage of interest. Companies use to issue notes payable to meet short-term financing needs.
International Financial Reporting Standards:
They are commonly known as IFRS. It is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.
To Identify: The total current liabilities for the Company LV as on December 31, 2014.
(b)
To Identify: The Composition of long-term gross borrowings according to financial statement notes on December 31, 2014.
(c)
To Ascertain: How borrowings are measured, according to the accounting policy of financial statement notes.
(d)
The fixed rate and adjustable rate of borrowings of Company LV on December 31, 2014.
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Chapter 10 Solutions
FINANCIAL ACCOUNTING>IC<
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Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning