Liabilities, Receivables and Other Related Items
This chapter’s main objectives are to facilitate the understanding of different categories of liabilities and receivables and their use. Definitions of liabilities and receivables are provided, classifications are also analysed and used in association to different measurement techniques. Within the context of current liabilities and receivables several examples are provided for trade liabilities or receivables, bad debts and foreign currency conversion effects. Then the employees benefits and related issues are presented, with examples of computation and journal entries, within the Romanian context. Value added tax is another topic, with examples related to the acquisitions and sales. Non-current liabilities section is emphasizing examples on bonds and leasing contracts. An important part of this chapter is dedicated to provisions, their definition, measurement, adjustment and specific cases based on both Romanian and international practice. The chapter ends with eight summary questions and their brief answers, as conclusions.