chapter13Long-Term Liabilities 西方 财务会计 电子课件.ppt

CHAPTER 13 LONG-TERM LIABILITIES(cont.) Do not require the use of funds within one year(or the next operating cycle,whichever is longer) Usually arise from major expenditures, such as acquisitions of plant assets,the purchase of another company,or refinancing an existing long-term obligation that is about to mature. LONG-TERM LIABILITIES Relatively few in number but involve large dollar amounts. Examples: bonds, notes, equipment purchase obligations, permanent customer deposits, some obligations under pension and deferred compensation plans, certain types of lease obligations, deferred income taxes, and some deferred revenue items. Long-term LiabilitiesMeasurement and Valuation Record long-term liabilities at the fair value of the goods or services received. Interest expense is based on the market interest rate on the date of the debt issuance and the beginning balance of the liability. Book value is the present value of all future cash payments, discounted at the market interest rate at issuance. Advantages of Issuing Bonds A principal advantage to income taxes. (page234) increase a company’s rate of return on equity. (page 235) Types of Bonds (Cont.)(P.235) Term bonds(sinking fund bonds): Bonds that mature in one lump sum on a specified future date. Serial bonds: Bonds that mature in a series of installments at future dates. Types of Bonds(P.236) Registered bonds: keeps a record of the names and addresses of all bondholders and pays interest only to those individuals whose names are on file. Bearer (coupon) bonds: Unregistered bonds . pays interest to anyone who can show evidence of ownership.  Types of Bonds (Cont.)(P.236) Secured bonds(Collateral trust bonds): Bonds usually secured by stocks and bonds of other corporations owned by the issuing company. Unsecured (debenture) bonds: Bonds for which no specific collateral has been pledged. Types of Bonds (Cont.)(P.235) Convertible bonds: Bonds that can be converted to other securities at the