10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
testjbankjforjIntermediatejAccounting,jVolumej
2,j13thjCanadianjEditionjbyjDonaldjE.jKieso
NON-
FINANCIALj ANDj CURRENTj LIABILITIESjCHAP
TERjSTUDYjOBJECTIVES
13-1
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
1. Understandjj thejj importancejj ofjj non-
financialj andjj currentjj liabilitiesjj fromjajbusinessjperspective.jCashjflowjmanage
mentjisjajkeyjcontroljfactorjforjmostjbusinesses.jTakingjadvantagejofjsupplierjdisco
untsjforjpromptjpaymentjisjonejstepjcompaniesjcanjtake.jControljofjexpensesjandjrel
atedjaccountsjpayablejcanjimprovejthejefficiencyjofjajbusiness,jandjcanjbejparticularl
yjimportantjduringjeconomicjdownturns.
2. Definejliabilities,jdistinguishjfinancialjliabilitiesjfromjotherjliabilities,
about:blank 1/73
,10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
13-1
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
1. Understandjj thejj importancejj ofjj non-
financialj andjj currentjj liabilitiesjj fromjajbusinessjperspective.jCashjflowjmanage
mentjisjajkeyjcontroljfactorjforjmostjbusinesses.jTakingjadvantagejofjsupplierjdisco
untsjforjpromptjpaymentjisjonejstepjcompaniesjcanjtake.jControljofjexpensesjandjrel
atedjaccountsjpayablejcanjimprovejthejefficiencyjofjajbusiness,jandjcanjbejparticularl
yjimportantjduringjeconomicjdownturns.
2. Definejjjliabilities,jjjdistinguishjjjfinancialjjjliabilitiesjjjfromjjjotherjjjliabilities, jandj id
entifyj howj theyj arej measured.j Liabilitiesjarejdefinedjasjanjobligationjofjanjentityj
arisingjfromjpastjtransactionsjorjeventsjthatjarejsettledjthroughjajtransferjofjeconomi
cjresourcesjinjthejfuture.jThejentityjshouldjhavejlittlej(orjno)jabilityjtojavoidjthejdutyj
orjresponsibility.jFinancial jliabilitiesjarejajsubsetjofjliabilities.jTheyjarejcontractualjobl
igationsjtojdeliverjcashjorjotherjfinancialjassetsjtojanotherjparty,jorjtojexchangejfinan
cialjassetsjorjliabilitiesjwithjanotherjpartyjunderjconditionsjthatjarejpotentiallyjunfavo
urable.jFinancialjliabilitiesjarejinitiallyjrecognizedjatjfairjvalue,jandjsubsequentlyjeithe
rjatjamortizedjcostjorjfairjvalue.jASPEjdoesjnotjspecifyjhowjnon-
financialjliabilitiesjarejmeasured.jHowever,junearnedjrevenuejisjgenerallyjmeasuredj
atjthejfairjvaluejofjthejgoodsjorjservicesjtojbejdeliveredjinjthejfuture,jwhilejothersjare
jmeasuredjatjthejbestjestimatejofjthejresourcesjneededjtojsettlejthejobligation.jUnde
rjIFRS,jnon-
financialjliabilitiesjotherjthanjunearnedjrevenuejarejmeasuredjatjthejbestjestimatejofj
thejamountjthejentityjwouldjrationallyjpayjatjthejdatejofjthejSFPjtojsettlejthejpresentj
obligation.
3. Definejcurrentjliabilitiesjandj identifyj andj accountj forj commonj typesj ofjcurrent
j liabilities.j Currentj liabilitiesj arej obligationsj thatj arej payablej withinj onejyearjfromjth
ejdatejofjthejSFPjorjwithinjthejoperatingjcyclejifjthejcyclejisjlongerjthanjajyear.jIFRSjal
sojincludesjliabilitiesjheldjforjtradingjandjanyjobligationjwherejthejentityjdoesjnotjhav
ejanjunconditionaljrightjtojdeferjsettlementjbeyondj12jmonthsjafterjthejdatejofjthejS
FP.jTherejarejseveraljtypesjofjcurrentjliabilities.jThejmostjcommonjarejaccountsjandjn
otesjpayable,jandjpayroll-relatedjobligations.
4. Identifyj andj accountj forj thej majorj typesj ofj employee-
relatedj liabilities.jEmployee-
relatedjliabilitiesjincludej(1)jpayrolljdeductions,j(2)jcompensatedjabsences,jandj(3)j
profit-
sharingjandjbonusjagreements.jPayrolljdeductionsjarejamountsjthatjarejwithheldjfro
mjemployeesjandjresultjinjanjobligationjtojthejgovernmentjorjanotherjparty.jThejem
ployer’sjmatchingjcontributionsjarejalsojincludedjinjthisjobligation.jCompensatedjab
sencesjearnedjbyjemployeesjarejcompanyjobligationsjthatjarejrecognizedjasjemploy
eesjearnjanjentitlementjtojthem,jasjlongjasjtheyjcanjbejreasonablyjmeasured.jBonu
sesjbasedjonjincomejarejaccruedjasjanjexpensejandjliabilityjasjthejincomejisjearned.
5. Explainjthejrecognition,jmeasurement,jandjdisclosurejrequirementsjforjdecommiss
ioningj andj restorationj obligations.j Aj decommissioning,j restoration,jorjassetjretir
ementjobligationj(ARO)jisjanjestimatejofjthejcostsjajcompanyjisjobligedjtojincurjwhen
jitjretiresjcertainjassets.jItjisjrecorded jasjajliabilityjand jisjusuallyjlongjtermjinjnature.j
UnderjASPE,jonlyjlegaljobligationsjarejrecognized.jThey
13-2
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
arejmeasuredjatjthejbestjestimatejofjthejcostjtojsettlejthemjatjthejdatejofjthejSFP,jan
djthejassociatedjcostjisjincludedjasjpartjofjthejcostjofjproperty,jplant,jandjequipment
.jUnderjIFRS,jbothjlegaljandjconstructivejobligationsjarejrecognized.
Theyjarejmeasuredjatjthejamountjthejentityjwouldjrationallyjpayjtojbejrelievedjofjthe
jobligation,jandjarejcapitalizedjasjpartjofjproperty,jplant,jandjequipmentjorjtojinvent
ory,jifjduejtojproductionjactivities.jOverjtime,jthejliabilityjisjincreasedjforjthejtimejval
uejofjmoneyjandjthejassetjcostsjarejamortizedjtojexpense.jEntitiesjdisclosejinformatio
njaboutjthejnaturejofjthejobligationjandjhowjitjisjmeasured,jwithjmorejdisclosuresjre
about:blank 2/73
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quiredjunderjIFRSjthanjASPE.
about:blank 3/73
, 10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
13-2
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
arejmeasuredjatjthejbestjestimatejofjthejcostjtojsettlejthemjatjthejdatejofjthejSFP,jan
djthejassociatedjcostjisjincludedjasjpartjofjthejcostjofjproperty,jplant,jandjequipment
.jUnderjIFRS,jbothjlegaljandjconstructivejobligationsjarejrecognized.
Theyjarejmeasuredjatjthejamountjthejentityjwouldjrationallyjpayjtojbejrelievedjofjthe
jobligation,jandjarejcapitalizedjasjpartjofjproperty,jplant,jandjequipmentjorjtojinvent
ory,jifjduejtojproductionjactivities.jOverjtime,jthejliabilityjisjincreasedjforjthejtimejval
uejofjmoneyjandjthejassetjcostsjarejamortizedjtojexpense.jEntitiesjdisclosejinformatio
njaboutjthejnaturejofjthejobligationjandjhowjitjisjmeasured,jwithjmorejdisclosuresjre
quiredjunderjIFRSjthanjASPE.
6. Explainjthejissuesjandjaccountjforjproductjguarantees,jotherjcustomerjprogra
mjobligations,jandjunearnedjjrevenue.jjHistorically,jjanjjexpensejapproachjhasjbe
enjusedjtojaccountjforjthejoutstandingjliability,jandjthisjtypejofjapproachjisjstilljusedjf
orjassurance-typejwarranties,jasjinitiallyjdiscussedjinjChapter
6. Morejrecently,jstandardsjsuchjasjIFRSj15jhavejmovedjtojajrevenuejapproachjforjwa
rrantiesjthatjarejnotjincludedjinjthejsalesjpricejofjthejproductj(thatjis,jforjservice-
jtypejwarranties).jUnderjthejexpensejapproach,jthejoutstandingjliabilityjisjmeasuredja
tjthejcostjofjthejeconomicjresourcesjneededjtojmeetjthejobligation.jThejassumptionjis
jthat,jalong jwithjthejliabilityjthatjisjrequiredjtojbejrecognized jatjthejreportingjdate,jth
ejassociatedjexpensejneedsjtojbejmeasuredjandjmatchedjwithjthejrevenuesjofjthejper
iod.jUnderjthejrevenuejapproach,jthejoutstandingjliabilityjisjmeasuredjatjthejvaluejofj
thejobligation.jThejproceedsjreceivedjforjanyjgoodsjorjservicesjyetjtojbejdeliveredjorj
performedjarejconsideredjtojbejunearnedjrevenuejatjthejpointjofjsale.jUntiljthejreven
uejisjearned,jthejobligation—thejliability—
isjreportedjatjitsjsalesjorjfairjvalue.jThejliabilityjisjthenjreducedjasjthejrevenuejisjearn
ed.
Morejgenerally,jwhenjanjentityjreceivesjproceedsjinjadvancejorjforjmultiple
deliverables,junearnedjrevenuejisjrecognizedjtojthejextentjthejentityjhasjnotjyetjperf
ormed.jThisjisjmeasuredjatjthejfairjvaluejofjthejremainingjgoodsjorjservicesjthatjwillj
bejdelivered.jWhenjcostsjremainjtojbejincurredjinjrevenuejtransactionsjwherejthejrev
enuejisjconsideredjearnedjandjhasjbeenjrecognized,jestimatedjliabilitiesjandjexpense
sjarejrecognizedjatjthejbestjestimatejofjthejexpendituresjthatjwilljbejincurred.jThisjisja
njapplicationjofjthejmatchingjconcept.
7. Explainj andj accountj forj contingenciesj andj uncertainj commitments,j andjidentify
j thej accountingj andj reportingj requirementsj forj guaranteesj and jcommitments.j Unde
rjexistingjstandards,jajlossjisjaccruedjandjajliabilityjrecognizedjifj(1)jinformationjtha
tjisjavailablejbeforejthejissuancejofjthejfinancialjstatementsjshowsjthatjitjisjlikelyj(orj
morejlikelyjthanjnotjunderjIFRS)jthatjajliabilityjhasjbeenjincurredjatjthejdatejofjthejfin
ancialjstatements,jandj(2)jthejlossjamountjcanjbejreasonablyjestimatedj(underjIFR
S,jitjwouldjbejajrarejsituationjwherejthisjcouldjnotjbejdone).jSomejminorjchangesjar
ejunderjconsiderationjbyjthejIASBjasjdescribedjinjthejLookingjAheadjsectionjofjthejc
hapter.
Guaranteesjinjgeneraljarejaccountedjforjsimilarlyjtojcontingencies.jCommitments,jo
rjcontractualjobligations,jdojnotjusuallyjresultjinjajliabilityjatjthejdatejofjthejSFP.jInfo
rmationjaboutjspecificjtypesjofjoutstandingjcommitmentsjisjreportedjatjthejdatejofjt
hejSFP.
13-3
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
8. Indicatej howj non-
financialj andj currentj liabilitiesj arej presentedj andjanalyzed.jCurrentjliabilityjaccou
ntsjarejcommonlyjpresentedjasjthejfirstjclassificationjinjthejliabilityjsectionjofjthejSFP
,jalthoughjunderjIFRS,janjalternativejpresentationjisjtojpresentjcurrentjassetsjandjlia
bilitiesjatjthejbottomjofjthejstatement.jWithinjthejcurrentjliabilityjsection,jthejaccount
sjmayjbejlistedjinjorderjofjtheirjmaturityjorjinjorderjofjtheirjliquidationjpreference.jIFR
Sjrequiresjinformationjaboutjandjreconciliationsjofjanyjprovisions.jAdditionaljinforma
tionjisjprovidedjsojthatjtherejisjenoughjtojmeetjthejrequirementjofjfulljdisclosure.jInfo
rmationjabout
about:blank 4/73
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
testjbankjforjIntermediatejAccounting,jVolumej
2,j13thjCanadianjEditionjbyjDonaldjE.jKieso
NON-
FINANCIALj ANDj CURRENTj LIABILITIESjCHAP
TERjSTUDYjOBJECTIVES
13-1
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
1. Understandjj thejj importancejj ofjj non-
financialj andjj currentjj liabilitiesjj fromjajbusinessjperspective.jCashjflowjmanage
mentjisjajkeyjcontroljfactorjforjmostjbusinesses.jTakingjadvantagejofjsupplierjdisco
untsjforjpromptjpaymentjisjonejstepjcompaniesjcanjtake.jControljofjexpensesjandjrel
atedjaccountsjpayablejcanjimprovejthejefficiencyjofjajbusiness,jandjcanjbejparticularl
yjimportantjduringjeconomicjdownturns.
2. Definejliabilities,jdistinguishjfinancialjliabilitiesjfromjotherjliabilities,
about:blank 1/73
,10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
13-1
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
1. Understandjj thejj importancejj ofjj non-
financialj andjj currentjj liabilitiesjj fromjajbusinessjperspective.jCashjflowjmanage
mentjisjajkeyjcontroljfactorjforjmostjbusinesses.jTakingjadvantagejofjsupplierjdisco
untsjforjpromptjpaymentjisjonejstepjcompaniesjcanjtake.jControljofjexpensesjandjrel
atedjaccountsjpayablejcanjimprovejthejefficiencyjofjajbusiness,jandjcanjbejparticularl
yjimportantjduringjeconomicjdownturns.
2. Definejjjliabilities,jjjdistinguishjjjfinancialjjjliabilitiesjjjfromjjjotherjjjliabilities, jandj id
entifyj howj theyj arej measured.j Liabilitiesjarejdefinedjasjanjobligationjofjanjentityj
arisingjfromjpastjtransactionsjorjeventsjthatjarejsettledjthroughjajtransferjofjeconomi
cjresourcesjinjthejfuture.jThejentityjshouldjhavejlittlej(orjno)jabilityjtojavoidjthejdutyj
orjresponsibility.jFinancial jliabilitiesjarejajsubsetjofjliabilities.jTheyjarejcontractualjobl
igationsjtojdeliverjcashjorjotherjfinancialjassetsjtojanotherjparty,jorjtojexchangejfinan
cialjassetsjorjliabilitiesjwithjanotherjpartyjunderjconditionsjthatjarejpotentiallyjunfavo
urable.jFinancialjliabilitiesjarejinitiallyjrecognizedjatjfairjvalue,jandjsubsequentlyjeithe
rjatjamortizedjcostjorjfairjvalue.jASPEjdoesjnotjspecifyjhowjnon-
financialjliabilitiesjarejmeasured.jHowever,junearnedjrevenuejisjgenerallyjmeasuredj
atjthejfairjvaluejofjthejgoodsjorjservicesjtojbejdeliveredjinjthejfuture,jwhilejothersjare
jmeasuredjatjthejbestjestimatejofjthejresourcesjneededjtojsettlejthejobligation.jUnde
rjIFRS,jnon-
financialjliabilitiesjotherjthanjunearnedjrevenuejarejmeasuredjatjthejbestjestimatejofj
thejamountjthejentityjwouldjrationallyjpayjatjthejdatejofjthejSFPjtojsettlejthejpresentj
obligation.
3. Definejcurrentjliabilitiesjandj identifyj andj accountj forj commonj typesj ofjcurrent
j liabilities.j Currentj liabilitiesj arej obligationsj thatj arej payablej withinj onejyearjfromjth
ejdatejofjthejSFPjorjwithinjthejoperatingjcyclejifjthejcyclejisjlongerjthanjajyear.jIFRSjal
sojincludesjliabilitiesjheldjforjtradingjandjanyjobligationjwherejthejentityjdoesjnotjhav
ejanjunconditionaljrightjtojdeferjsettlementjbeyondj12jmonthsjafterjthejdatejofjthejS
FP.jTherejarejseveraljtypesjofjcurrentjliabilities.jThejmostjcommonjarejaccountsjandjn
otesjpayable,jandjpayroll-relatedjobligations.
4. Identifyj andj accountj forj thej majorj typesj ofj employee-
relatedj liabilities.jEmployee-
relatedjliabilitiesjincludej(1)jpayrolljdeductions,j(2)jcompensatedjabsences,jandj(3)j
profit-
sharingjandjbonusjagreements.jPayrolljdeductionsjarejamountsjthatjarejwithheldjfro
mjemployeesjandjresultjinjanjobligationjtojthejgovernmentjorjanotherjparty.jThejem
ployer’sjmatchingjcontributionsjarejalsojincludedjinjthisjobligation.jCompensatedjab
sencesjearnedjbyjemployeesjarejcompanyjobligationsjthatjarejrecognizedjasjemploy
eesjearnjanjentitlementjtojthem,jasjlongjasjtheyjcanjbejreasonablyjmeasured.jBonu
sesjbasedjonjincomejarejaccruedjasjanjexpensejandjliabilityjasjthejincomejisjearned.
5. Explainjthejrecognition,jmeasurement,jandjdisclosurejrequirementsjforjdecommiss
ioningj andj restorationj obligations.j Aj decommissioning,j restoration,jorjassetjretir
ementjobligationj(ARO)jisjanjestimatejofjthejcostsjajcompanyjisjobligedjtojincurjwhen
jitjretiresjcertainjassets.jItjisjrecorded jasjajliabilityjand jisjusuallyjlongjtermjinjnature.j
UnderjASPE,jonlyjlegaljobligationsjarejrecognized.jThey
13-2
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
arejmeasuredjatjthejbestjestimatejofjthejcostjtojsettlejthemjatjthejdatejofjthejSFP,jan
djthejassociatedjcostjisjincludedjasjpartjofjthejcostjofjproperty,jplant,jandjequipment
.jUnderjIFRS,jbothjlegaljandjconstructivejobligationsjarejrecognized.
Theyjarejmeasuredjatjthejamountjthejentityjwouldjrationallyjpayjtojbejrelievedjofjthe
jobligation,jandjarejcapitalizedjasjpartjofjproperty,jplant,jandjequipmentjorjtojinvent
ory,jifjduejtojproductionjactivities.jOverjtime,jthejliabilityjisjincreasedjforjthejtimejval
uejofjmoneyjandjthejassetjcostsjarejamortizedjtojexpense.jEntitiesjdisclosejinformatio
njaboutjthejnaturejofjthejobligationjandjhowjitjisjmeasured,jwithjmorejdisclosuresjre
about:blank 2/73
,10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
quiredjunderjIFRSjthanjASPE.
about:blank 3/73
, 10/10/23,j8:44jPM TestjbankjforjIntermediatejAccounting,jVolumej2,j13thjCanadianjEditionjb…
13-2
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
arejmeasuredjatjthejbestjestimatejofjthejcostjtojsettlejthemjatjthejdatejofjthejSFP,jan
djthejassociatedjcostjisjincludedjasjpartjofjthejcostjofjproperty,jplant,jandjequipment
.jUnderjIFRS,jbothjlegaljandjconstructivejobligationsjarejrecognized.
Theyjarejmeasuredjatjthejamountjthejentityjwouldjrationallyjpayjtojbejrelievedjofjthe
jobligation,jandjarejcapitalizedjasjpartjofjproperty,jplant,jandjequipmentjorjtojinvent
ory,jifjduejtojproductionjactivities.jOverjtime,jthejliabilityjisjincreasedjforjthejtimejval
uejofjmoneyjandjthejassetjcostsjarejamortizedjtojexpense.jEntitiesjdisclosejinformatio
njaboutjthejnaturejofjthejobligationjandjhowjitjisjmeasured,jwithjmorejdisclosuresjre
quiredjunderjIFRSjthanjASPE.
6. Explainjthejissuesjandjaccountjforjproductjguarantees,jotherjcustomerjprogra
mjobligations,jandjunearnedjjrevenue.jjHistorically,jjanjjexpensejapproachjhasjbe
enjusedjtojaccountjforjthejoutstandingjliability,jandjthisjtypejofjapproachjisjstilljusedjf
orjassurance-typejwarranties,jasjinitiallyjdiscussedjinjChapter
6. Morejrecently,jstandardsjsuchjasjIFRSj15jhavejmovedjtojajrevenuejapproachjforjwa
rrantiesjthatjarejnotjincludedjinjthejsalesjpricejofjthejproductj(thatjis,jforjservice-
jtypejwarranties).jUnderjthejexpensejapproach,jthejoutstandingjliabilityjisjmeasuredja
tjthejcostjofjthejeconomicjresourcesjneededjtojmeetjthejobligation.jThejassumptionjis
jthat,jalong jwithjthejliabilityjthatjisjrequiredjtojbejrecognized jatjthejreportingjdate,jth
ejassociatedjexpensejneedsjtojbejmeasuredjandjmatchedjwithjthejrevenuesjofjthejper
iod.jUnderjthejrevenuejapproach,jthejoutstandingjliabilityjisjmeasuredjatjthejvaluejofj
thejobligation.jThejproceedsjreceivedjforjanyjgoodsjorjservicesjyetjtojbejdeliveredjorj
performedjarejconsideredjtojbejunearnedjrevenuejatjthejpointjofjsale.jUntiljthejreven
uejisjearned,jthejobligation—thejliability—
isjreportedjatjitsjsalesjorjfairjvalue.jThejliabilityjisjthenjreducedjasjthejrevenuejisjearn
ed.
Morejgenerally,jwhenjanjentityjreceivesjproceedsjinjadvancejorjforjmultiple
deliverables,junearnedjrevenuejisjrecognizedjtojthejextentjthejentityjhasjnotjyetjperf
ormed.jThisjisjmeasuredjatjthejfairjvaluejofjthejremainingjgoodsjorjservicesjthatjwillj
bejdelivered.jWhenjcostsjremainjtojbejincurredjinjrevenuejtransactionsjwherejthejrev
enuejisjconsideredjearnedjandjhasjbeenjrecognized,jestimatedjliabilitiesjandjexpense
sjarejrecognizedjatjthejbestjestimatejofjthejexpendituresjthatjwilljbejincurred.jThisjisja
njapplicationjofjthejmatchingjconcept.
7. Explainj andj accountj forj contingenciesj andj uncertainj commitments,j andjidentify
j thej accountingj andj reportingj requirementsj forj guaranteesj and jcommitments.j Unde
rjexistingjstandards,jajlossjisjaccruedjandjajliabilityjrecognizedjifj(1)jinformationjtha
tjisjavailablejbeforejthejissuancejofjthejfinancialjstatementsjshowsjthatjitjisjlikelyj(orj
morejlikelyjthanjnotjunderjIFRS)jthatjajliabilityjhasjbeenjincurredjatjthejdatejofjthejfin
ancialjstatements,jandj(2)jthejlossjamountjcanjbejreasonablyjestimatedj(underjIFR
S,jitjwouldjbejajrarejsituationjwherejthisjcouldjnotjbejdone).jSomejminorjchangesjar
ejunderjconsiderationjbyjthejIASBjasjdescribedjinjthejLookingjAheadjsectionjofjthejc
hapter.
Guaranteesjinjgeneraljarejaccountedjforjsimilarlyjtojcontingencies.jCommitments,jo
rjcontractualjobligations,jdojnotjusuallyjresultjinjajliabilityjatjthejdatejofjthejSFP.jInfo
rmationjaboutjspecificjtypesjofjoutstandingjcommitmentsjisjreportedjatjthejdatejofjt
hejSFP.
13-3
Testj Bankj forj Intermediatej Accounting,j Thirteenthj Canadianj Edition
8. Indicatej howj non-
financialj andj currentj liabilitiesj arej presentedj andjanalyzed.jCurrentjliabilityjaccou
ntsjarejcommonlyjpresentedjasjthejfirstjclassificationjinjthejliabilityjsectionjofjthejSFP
,jalthoughjunderjIFRS,janjalternativejpresentationjisjtojpresentjcurrentjassetsjandjlia
bilitiesjatjthejbottomjofjthejstatement.jWithinjthejcurrentjliabilityjsection,jthejaccount
sjmayjbejlistedjinjorderjofjtheirjmaturityjorjinjorderjofjtheirjliquidationjpreference.jIFR
Sjrequiresjinformationjaboutjandjreconciliationsjofjanyjprovisions.jAdditionaljinforma
tionjisjprovidedjsojthatjtherejisjenoughjtojmeetjthejrequirementjofjfulljdisclosure.jInfo
rmationjabout
about:blank 4/73
