TAILIEUCHUNG - Lecture Accounting principles – Chapter 15: Non-current liabilities

In this chapter students will be able to: Compare the impact of issuing debt instead of equity, account for bonds payable, account for instalment notes payable, account for leases, explain and illustrate the methods for the presentation and analysis of non-current liabilities. | Non-current Liabilities Bonds payable Bond basics Accounting for bond issues and retirements Notes payable Fixed principal payments Blended payments Lease liabilities Finance and operating leases Statement presentation and analysis Copyright John Wiley & Sons Canada, Ltd. 2 CHAPTER 15: Non-current Liabilities Compare the impact of issuing debt instead of equity. Account for bonds payable. Account for instalment notes payable. Account for leases. Explain and illustrate the methods for the presentation and analysis of non-current liabilities. Copyright John Wiley & Sons Canada, Ltd. 3 Non-current Liabilities Debt that is not current is a non-current liability: Current if settled within one year or normal operating cycle of company Common types: Bonds payable Notes payable Finance leases Referred to as financial liabilities Copyright John Wiley & Sons Canada, Ltd. 4 Advantages of Debt over Equity Shareholder control is not affected Debt holders have no voting rights Income tax savings Interest expense deductible; dividends are not Earnings per share may be higher No common shares are issued Return on equity may be higher Lower profit and shareholders’ equity Copyright John Wiley & Sons Canada, Ltd. 5 CHAPTER 15: Non-current Liabilities Compare the impact of issuing debt instead of equity. Account for bonds payable. Account for instalment notes payable. Account for leases. Explain and illustrate the methods for the presentation and analysis of non-current liabilities. Copyright John Wiley & Sons Canada, Ltd. 6 Bond Basics Board of directors approve issuing bonds Face value: amount due at maturity Contractual interest rate (coupon rate): rate used to calculate amount of interest received Usually an annual rate but paid semi-annually Maturity date: date when final payment is due Details are included in the bond certificate Once issued, bonds are traded on organized securities exchanges Usually issued in small denominations ($1,000) Copyright John Wiley & Sons Canada, .

• Kế toán - Kiểm toán
• Accounting principles
• Lecture Accounting principles
• Financial reporting
• Non current liabilities
• Bonds payable
• Lease liabilities
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting