Accounting

Notes

•Liabilities •Types of Liabilities •Spontaneous Liabilities: or "spontaneous sources of financing," are current liabilities that naturally arise from a company's daily operations, such as Accounts Payable, Salaries Payable, Rent Payable, etc. •Financial Liabilities: are obtained directly from the financial market. •General idea: finance short-term assets with short-term liabilities and long-term assets with long-term liabilities and equity. •Definition of Financial Liabilities– IFRS: NIC32.11 A financial liability is any liability that is: a. A contractual obligation: i. to deliver cash or other financial assets to another entity; or ii. to exchange financial assets or liabilities with another entity, on terms potentially unfavorable to the entity; b. a contract that will be or may be settled using the entity's own equity instruments. •Types of Funding •Line of Credit •Bank Loan •Commercial Mortgage Loan •Bank Guarantee •Factoring •Leasing •Bonds •Commercial Paper •Pasivo Financiero A one-time payment at the end, periodic interest payments, and principal repayment at maturity. Payments can be in equal installments, with grace periods, in foreign currency, or in...