Long term Liabilities in Government accounting
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This document discusses different types of long-term liabilities and deferred credits accounts. The "OTHER LONG-TERM LIABILITIES" account is used to record liabilities not classified elsewhere. The "DEFERRED CREDITS" account records money received before it is earned, such as unearned revenue. The "OTHER DEFERRED CREDITS" account is similar but for items not in the deferred credits to income account. Deferred income tax is a liability from income earned but not taxed yet due to accounting and tax differences, to be paid later.
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Deferred tax refers to the difference between the tax amount reported on a company's financial statements and the amount that will actually be paid in taxes. This difference arises due to timing differences in when income and expenses are recognized for accounting versus tax purposes. Deferred tax assets and liabilities are recorded to accurately reflect a company's future tax obligations or benefits. Common situations that can give rise to deferred tax include accrued expenses, deferred revenue, and stock-based compensation. Companies regularly assess and update their deferred tax positions as circumstances change over time.
Shiltscpa accounting 101 presentation
The document provides an overview of accounting concepts and financial statements for attorneys. It covers topics such as financial statements and tax returns, financial analysis, advisory functions, and client risks and opportunities that can be identified from statements and returns. The document defines accounting and discusses the accounting equation, balance sheet, income statement, statement of cash flows, and components of personal and business tax returns. It emphasizes how statements and returns can provide both obvious and not-so-obvious insights about clients' financial health, risks, opportunities, and more.
Deferred tax wikipedia, the free encyclopedia
Deferred tax is an accounting concept that recognizes temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their tax bases. A deferred tax liability is recognized when the carrying amount of an asset is greater than its tax base, and a deferred tax asset is recognized when the carrying amount of a liability is greater than its tax base or when a company has net operating losses. Deferred tax accounting aims to match expenses with related revenues over multiple years in accordance with the matching and temporal principles.
Liabilities
Generally, a liability can be defined as an obligation, based on a past transaction, to convey assets or perform services in the future
Similar to Long term Liabilities in Government accounting (20)
Financial Statements Research for a Publicly-Traded Company Fi.docx
Financial Statements Research for a Publicly-Traded Company Fi.docx
CFO Insight For Business Owners: How to Utilize Financial Statements
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Christus dominus
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Controlling
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Long term Liabilities in Government accounting
- 1. LONG-TERM LIABILITIES (450) OTHER LONG-TERM LIABILITIES This account is used to record all other long-term liabilities not falling under any of the specific long-term liability accounts. Debit this account for: Settlement/Payment of the long-term liabilities Credit this account for: • Incurrence of other long-term liabilities not classified under specific accounts • Other liabilities Example: Government acquired a land using mortgage. (Dr) Land (Cr) Mortgage Payable
- 2. DEFERRED CREDITS A deferred credit could mean money received in advance of it being earned, such as deferred revenue, unearned revenue, or customer advances. A deferred credit could also result from complicated transactions where a credit amount arises, but the amount is not revenue. A deferred credit is reported as a liability on the balance sheet. Depending on the specifics, the deferred credit might be a current liability or a noncurrent liability. In the past, it was common to see a noncurrent liability section with the heading Deferred Credits. (455) OTHER DEFERRED CREDITS This account is used to record collections received for items not specifically included in account “Deferred Credits to Income” Debit this account for: Transfer to appropriate account Credit this account for: • Collections for items not specifically included in account “Deferred Credits to Income” Example:
- 3. Definition of 'Deferred Income Tax' A liability recorded on the balance sheet that results from income already earned and recognized for accounting, but not tax, purposes. Also, differences between tax laws and accounting methods can result in a temporary difference in the amount of income tax payable by a company. This difference is recorded as deferred income tax. In other words, this would mean that income has been realized, but the tax on that income has not. For example, let's say that the amount of tax that a business should pay is $100,000, but due to tax laws, the amount actually payable for this fiscal year is $85,000. The additional $15,000 would be a deferred income tax liability that the company would need to pay later on.
- 4. (452) DEFERRED REAL PROPERTY TAX INCOME (452) DEFERRED SPECIAL EDUCATION TAX INCOME