Description
Solvency ratios measure a firm’s ability to meet its liabilities in the long term. A company may be liquid and profitable in the short run, but unable to meet its non-current obligations; this puts its sustainability at risk.
In this Advanced Financial Reporting – Long-Term Liabilities course, we teach you how to record and analyze non-current liabilities. We discuss in detail bonds, loans, leases, debt covenants, and pension plans.
We will talk about the accounting treatment of non-current liabilities under various accounting standards, such as IFRS and GAAP, and how they impact the financial statements of a company. We will also examine disclosures required in the financial statements related to non-current liabilities and how to analyze various solvency ratios.
You will learn the relevant debt terminology and see what a debt amortization schedule looks like. By the end of the course, you will be able to calculate a loan’s effective interest rate, coupon payments, and outstanding balances.
What You’ll Learn
In this Advanced Financial Reporting – Long-Term Liabilities course, we cover:
- Types of long-term liabilities
- Recognition and measurement of bonds
- Constructing a bond’s amortization schedule
- Calculating a loan’s effective interest rate
- Accounting for leases from the lessor’s and lessee’s perspective
- The difference between defined benefit and defined contribution plans
