os 9-14 Answer each of the following related to international accounting standar

Question

os 9-14 Answer each of the following related to international accounting standards. intermational accounting a. In general, how similar or different are the definitions and characteristics of current liabilities bet IFRS and US. GAAP? vw standards C1 C2 b. Companies reporting under IFRS often reference a set of current liabilities with the title finan abilities. Identify two current liabilities that would be classified under financial liabilities Hint: Samsung offers examples in its Appendix A financial statements.)

Explanation / Answer

1.Answer

Under IFRS, a financial liability that is due within 12 months from the reporting date, or is payable on demand, is classified as current. This applies to a loan with terms that enable the lender to call the loan at any time, even if such a loan may not be due to be settled within 12 months of the reporting date.

Under GAAP A current liability is an obligation that is payable within one year. The cluster of liabilities comprising current liabilities is closely watched, for a business must have sufficient liquidity to ensure that they can be paid off when due. All other liabilities are reported as long-term liabilities, which are presented in a grouping lower down in the balance sheet below current liabilities.

2.

Bills payable under GAAP

Notes Payable Under IFRS

Deffered Income Tax Under IFRS

Tax Provisions under GAAP

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