Bond 007

In: English and Literature

Submitted By 12bgomo
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CHAPTER 11 LIABILITIES
1. INTRODUCTION. a. Applicability. The applicability of this chapter is specified in Chapter 1, “Accounting Overview.” Background/Authorities. This chapter prescribes the policies and general procedures for recording and reporting liabilities consistent with the Statement of Federal Financial Accounting Standards (SFFAS) or Government Accountability Office (GAO) Title 2 standards in the absence of SFFAS. Liabilities include accounts payable; accrued expenses; interest payable; accrued payroll and benefits; accrued leave; deferred revenues, including advances; deposit funds; debt issued under borrowing authority; bonds; loan guarantees and loan commitments; contingent liabilities; lease liabilities; and unfunded liabilities. Policy/Objectives. (1) All liabilities shall be measured and recorded as accurately as possible, given the circumstances under which the liability was created. Liabilities recorded in financial statements shall reflect invoices received and accruals for any costs incurred, and assets received for which progress billings, grant reimbursement requests, and other billings have not yet been received. Liabilities shall be recorded and/or footnoted irrespective of whether funds are available or authorized for payment. Contingent liabilities shall be recorded as incurred liabilities if the loss is probable and the amount can be reasonably estimated. Loss contingencies that are judged to have a reasonably possible chance of occurring or that cannot be estimated should be included as a footnote on the financial statements. Separate accounts are established for major categories of liabilities to facilitate their clear and full disclosure on financial statements. The accounting records will differentiate between Federal and nonFederal liabilities. Accounts will provide for the classifications contained in the Standard General Ledger…...

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