Essay on Tutorial Week 5

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Assets |Future economic benefit |Controlled |Past transactions |FEBs are probable | |Trade receivables |Cash remitted from debtors |A legal obligations exists for the debtors to pay for the goods or services that they have consumed |The provision of service has occurred |It is more likely that the debtors will pay the amounts owing | |Investments in shares |revenues in the form of dividends and capital gains. |shares are legally invested |the purchase of the shares |the shares are most likely will generates revenue | |Inventory |cash from sale or use of inventory |ownership entitlements to the inventory |the purchased or manufacture of the inventory |more probable that the inventory will be sold and benefits received. | |Brand names |familiarity with the product and its quality will generate sales |The brand name is owned by the entity and no other entity can use the brand name |The brand could have been internally generated (i.e product that was launched by entity) or could have been acquired as a results of a business acquisition. |it is more likely that having a well-known brand name will enhance product sales | |
5.27Using the Conceptual Framework definition and criteria, explain why each of the following items are liabilities.

|Future sacrifice of economic benefits |Present Obligation |Past E/Probable |Future sacrifice is probable | |Bank Loan |Future cash payments for interest and loan repayments |legal obligation via debt contract |Drawing down the loan

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