Question

Each member of the team should select a large corporation and go to its website. Search until you find the company’s balance sheet. From the company’s balance sheet, scroll down until you find the liabilities.
Required
1. List all of the company’s liabilities—both current and long-term—along with each amount.
2. Read the company’s notes to the financial statements and include any details that help you identify the amount of a liability.
3. Compute the company’s current ratio and debt ratio.
4. Bring your findings to your team meeting, compare your results with those of your team members, and prepare either a written report or an oral report, as directed by your instructor.

Answer 1

Selected company for above answerr - Unilever Audited Financial 2019 .. Details are as below relates to Liability ( complete analysis)

Undr current Liability – deferred consideration represents for acquisition euro 208 Mio which include contingent consideration of Euro 154 Mio . These contingent consideration payments are dependent on acquired business achieving contractually agreed financial targets

Comoany provides supplier financing arrangements for trade payable.

Most important pouint to note :

Trade payable are initially recognised at fair value less any directly transaction ciosts. Trade payable subsequently measured at Amortized cost – this treated as Financial Liability as per IFRS 9

Other liability – Initial measurement at fair value and subsequently measurement based on following matter :

1) Accrual/ social security based on amortised cost – follow Effective Interest rate method

2)   Deferred consideration – through FVTPL

Unilever is doing excellent performance from Reevenue growth , EBIT Margin maitian approx 20%+ well managed working capital and maintain free cahs flow . Companies strong equity and retained earnings can able to cover present long term debt position .