Explain whether each of the following would be considered a liability according to IFRS (using the criteria from the chapter) on December 31, 2017. Intuitively, would you consider each of these items a liability, regardless of how it's accounted for according to IFRS? Explain.
a. Interest on a bank loan outstanding on December 31, 2017. Interest isn't payable until the loan is repaid on September 30, 2018.
b. A $1,000,000 loan from a shareholder that bears no interest and has no scheduled repayment date.
c. The cost of cleaning up the site of a factory when it closes, as required by environ mental laws. The factory is expected to close in 25 years.

  • CreatedFebruary 26, 2015
  • Files Included
Post your question