General Motors Corporation (GM) is one of the world’s largest automakers. Explain why, according to IFRS, GM would classify each of the following items as a liability. If you don’t think an item is a liability, explain why not.
a. wages owed to employees
b. amounts withheld from employees’ pay for income taxes.
c. commitment made to employees while they are working to provide them with dental care when they retire
d. amounts owed to suppliers of auto parts
e. estimated cost of providing warranty service to people who have purchased GM cars and trucks
f. amount GM is being sued for by an employee who was fired. The lawsuit hasn’t been settled or gone to court yet.