Wiley Interpretation and Application of IFRS Standards

18Current Liabilities, Provisions, Contingencies and Events After the Reporting Period

1. Introduction
2. Definitions of Terms
3. Recognition and Measurement
   1. Current Liabilities
      1. Classification
      2. Nature of Current Liabilities
      3. Offsetting Current Assets Against Related Current Liabilities
      4. Types of Liabilities
   2. Amount and Payee Known
      1. Short-Term Obligations Expected to be Refinanced
      2. Long-Term Debt Subject to Demand for Repayment
   3. Payee Known but Amount May Need to Be Estimated
      1. Provisions
4. Disclosures
5. Practical Examples
   1. 1. Dry-Docking Costs
      2. Unlawful Environmental Damage
      3. Onerous Contracts
      4. Decommissioning Costs
      5. Levies
   2. Payee Unknown and the Amount May Have to Be Estimated
   3. Contingent Liabilities
      1. Assessing the Likelihood of Contingent Events
      2. Remote Contingent Losses
      3. Litigation
   4. Financial Guarantee Contracts
   5. Contingent Assets
   6. Disclosures Prescribed by IAS 37 for Contingent Liabilities and Contingent Assets
6. Reporting Events Occurring after the Reporting Period
   1. 1. Authorisation Date
      2. Adjusting and Non-Adjusting Events (After the Reporting Period)
      3. Dividends Proposed or Declared after the Reporting Period
      4. Going Concern Considerations
      5. Disclosure Requirements
7. Examples of Financial Statement Disclosures
8. Future Developments
9. US GAAP Comparison

Introduction

Accounting for all of a reporting entity's liabilities is clearly necessary in order to accurately convey its financial position to investors, creditors and other stakeholders. Different kinds of liabilities have differing implications: ...