![]() For an analyst, this provides some details of how aggressive or conservative a company is with its depreciation methods. The unamortized portion is a liability, but it is only a rough estimate of the asset’s fair market value. ![]() Unamortized Investment Tax Credits (UITC): This represents the net between an asset's historical cost and the amount that has already been depreciated.With rapidly rising health care and deferred compensation, this liability is not to be overlooked. In the AT&T example, this constitutes one-half of the total non-current total second only to long-term debt. Post-Employment Benefits: These are benefits an employee or family members may receive upon his/her retirement, which are carried as a long-term liability as it accrues.Once the revenue is no longer deferred, this item is reduced by the amount earned and becomes part of the company's revenue stream. It may include customer advances, deferred revenue, or a transaction where credits are owed but not yet considered revenue. These credits are basically revenue collected before it is recorded as earned on the income statement. Deferred Credits: This is a broad category that may be recorded as current or non-current depending on the specifics of the transactions.Contingent Liability Evaluation: A contingent liability is a liability that may occur depending on the outcome of an uncertain future event.This is a common liability in the automotive industry, as most cars have long-term warranties that can be costly. It’s the estimated amount of time and money that may be spent repairing products upon the agreement of a warranty. Warranty Liability: Some liabilities are not as exact as AP and have to be estimated.This also includes the financial impact of a product line that is or has recently been shut down. Companies are required to account for the financial impact of an operation, division, or entity that is currently being held for sale or has been recently sold. Liabilities of Discontinued Operations: This is a unique liability that most people glance over but should scrutinize more closely.This amount will be reduced in the future with an offsetting entry once the product or service is delivered. ![]() ![]() Unearned Revenues: This is a company's liability to deliver goods and/or services at a future date after being paid in advance. An expense is always a liability to incur, and when it gets incurred, it is shown as a cash outflow from the cash flow and gets accrued in the income statement.This period is around two weeks, so this liability usually pops up four times per year, until the dividend is paid. Dividends Payable: For companies that have issued stock to investors and pay a dividend, this represents the amount owed to shareholders after the dividend was declared.This represents the interest on those short-term credit purchases to be paid. Interest Payable: Companies, just like individuals, often use credit to purchase goods and services to finance over short time periods.Since most companies pay their employees every two weeks, this liability changes often. Wages Payable: The total amount of accrued income employees have earned but not yet received. ![]()
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