Liabilities are shown after the Assets section in the Statement of Financial Position/ Balance Sheet. These are financial or legal obligations that an entity may accrue over the course of doing business. Examples of liabilities include: accounts payable, bank loans outstanding and mortgages.
We will dive further into detail about individual liability accounts in later articles.
A sample Statement of Financial Position/ Balance Sheet highlighting the Liability elements, can be found below.
* In ASPE standards, there is no concept of Accumulated and Other Comprehensive Income, so this category will not exist.
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