Teacher, how do you distinguish between current and potential obligations?

Latent obligations are possible obligations whose outcome depends on uncertain future events, i.e., whether potential obligations eventually become present obligations can only be confirmed or determined by the occurrence or non-occurrence of certain uncertain future events. For example, on December 2, 200, enterprise A had an economic dispute with enterprise B for some reason, and was sued by enterprise B.

Until the end of 200, the lawsuit had not been heard. Due to the complexity of the case and the imperfection of the relevant laws and regulations, it is difficult to determine the final outcome of the litigation from the end of the 200s. At the end of 200, the obligations assumed by Company A were potential obligations.

Current obligations refer to the obligations that the enterprise has assumed under the current conditions. For example, on December 20, 200, Company A signed a guarantee contract with Company B, promising to provide guarantee for the three-year project loan of Company B. As a result of the signing of the guarantee contract, Company A has assumed a present obligation.

However, the assumption of the present obligation does not mean that the economic benefits are likely to flow out of Company A. If the financial condition of enterprise B is good in 200, it means that it is unlikely that enterprise A will be jointly and severally liable. In other words, from the perspective of 200 years, it is not likely that Company A will be required to flow economic benefits to fulfill this obligation.

To this end, Company A should disclose the present obligation as a contingent liability.

Contingent liabilities are potential obligations, projected liabilities are current obligations, contingent liabilities are to be disclosed, and projected liabilities are to be presented. The probability of a potential obligation is relatively low, generally less than 50%, and the current obligation is very likely to occur, and the probability of the requirement is higher than 50%.

Potential obligation: It is an indefinite obligation formed by past transactions or events that may form a future present obligation, also known as a contingent obligation. This contingent obligation is reflected either in the uncertainty as to whether the present obligation in the future period will necessarily be formed, or in the uncertainty in the size (amount) of the present obligation in the future period.

Examples of the differences between existing and potential obligations are as follows:

1. Potential Obligations.

A latent obligation is a possible obligation whose outcome depends on uncertain future matters. In other words, whether a potential obligation is ultimately transformed into a present obligation can only be determined by the occurrence or non-occurrence of certain uncertain future events. Contingent liabilities.

As a potential obligation, the outcome can only be confirmed by the occurrence or non-occurrence of uncertain events in the future.

2. Current Obligations.

Current obligations refer to the obligations that the enterprise has assumed under the current conditions. A contingent liability is a current obligation characterized by the fact that the performance of the current obligation is unlikely to result in an outflow of economic benefits from the enterprise, or that the amount of the current obligation cannot be reliably measured.

Among them, "it is unlikely to cause an outflow of economic benefits from the enterprise" means that the probability that the current obligation will result in an outflow of economic benefits from the enterprise does not exceed 50% (including 50%). "The amount cannot be reliably measured" means that the "amount" of economic benefits resulting from the current obligation is difficult to reasonably predict from the enterprise, and the result of the performance of the current obligation is highly uncertain.

NEED NOTICE:

The congratulatory obligation is a current obligation assumed by the enterprise and refers to contingencies.

The relevant obligation is the obligation that the enterprise has assumed under the current conditions, and the enterprise has no other choice but to fulfill the current obligation. The obligations referred to here include both statutory and presumptive obligations:

1. Statutory obligation: refers to the contract, laws and regulations or other judicial interpretations.

The obligations arising from such obligations are usually the responsibilities that enterprises must perform in accordance with the provisions of economic laws and regulations in economic management and economic coordination. For example, the obligations arising from the signing of a purchase contract between an enterprise and another enterprise are statutory obligations.

2. Presumptive obligation: refers to the obligation arising from the specific behavior of the enterprise. The specific behavior of an enterprise refers to the past practices, public commitments or publicly announced business policies of the enterprise.

As a result of past practice, or through these commitments or public statements, the enterprise has indicated to the outside world that it will have specific responsibilities, thus giving affected parties a reasonable expectation that they will fulfil those responsibilities.

Legal analysis: 1. The current obligations refer to the obligations that the enterprise has assumed under the current conditions. For example, if the truck driver has a traffic accident during transportation, and the company immediately undertakes to bear the obligation of compensation, but the situation is still developing, and it is not possible to predict the compensation costs to be incurred, in this case, it is a kind of current obligation.

2. Potential obligations are possible obligations whose outcome depends on uncertain future matters. For example, if the transport driver of the enterprise drives the truck on the road, there is a possibility of a traffic accident and there may be compensation, and this obligation depends on the occurrence of uncertain events in the future, which is a potential obligation.

Legal basis: Accounting Standards for Business Enterprises No. 13 - Contingencies Article 13 An enterprise shall not recognize contingent liabilities and contingent assets. Contingent liabilities refer to the potential obligations formed by past transactions or events, the existence of which must be confirmed by the occurrence of uncertain events in the future or the absence of spinal fluid modeling; or a current obligation arising from past transactions or events, the performance of which is unlikely to result in an outflow of economic benefits from the enterprise or the amount of the obligation cannot be reliably measured.

Contingent assets refer to potential assets formed by past transactions or events, the existence of which must be confirmed by the occurrence or non-occurrence of uncertain events in the future.

The difference between a presumptive obligation and a present obligation is that the statutory obligation and the presumptive obligation have different meanings, which are as follows:

1. Presumptive obligations refer to the liabilities that the enterprise will assume based on the company's customary practices, public commitments or publicly announced policies over the years, and these responsibilities also make the relevant parties form a reasonable expectation that the enterprise will perform its obligations and release itself from liability. For example, if an enterprise has formulated a sales policy for many years, providing after-sales warranty services for the goods sold for a certain period of time, the warranty services that are expected to be provided for the goods sold are presumptive obligations and should be recognized as a liability.

2. The current obligation to travel to the empty refers to the obligation that the enterprise has undertaken under the current conditions. Obligations arising from future transactions or events are not present obligations. For example, a possible obligation whose outcome depends on uncertain future matters is a potential obligation and not a present obligation.

Current obligations refer to the obligations that the enterprise has assumed under the current conditions. Contingent liabilities as present obligations.

According to the definition of liabilities, liabilities have the following characteristics:

1. Liabilities are formed by past transactions or events of the enterprise;

2. The repayment of liabilities is expected to lead to the outflow of economic benefits from the enterprise;

3. Liabilities are the current obligations of an enterprise.

To sum up, the current obligations refer to the obligations that the enterprise has assumed under the current conditions. Statutory obligations refer to obligations arising from contracts, regulations or other judicial interpretations.

Legal basis]:

Article 33 of the Partnership Enterprise Law of the People's Republic of China.

The distribution of profits and losses of the partnership shall be handled in accordance with the provisions of the partnership agreement; If the partnership agreement is not agreed upon or the agreement is not clear, the partners shall decide through consultation; If the negotiation fails, the partners shall distribute and share according to the proportion of paid-in capital contributions; If it is not possible to determine the proportion of capital contribution, it shall be equally distributed and shared by the partners.

The partnership agreement shall not stipulate that all profits shall be distributed to some of the partners or that some of the partners shall bear all losses.

The difference in meaning between latent and present obligations:

1 Whether a potential obligation is ultimately transformed into a present obligation is determined by the occurrence or non-occurrence of certain uncertain future events. The outcome of a contingent liability as a potential obligation can only be confirmed by the occurrence or non-occurrence of uncertain events in the future.

2 Current obligations refer to obligations that the enterprise has assumed under the current conditions. A contingent liability is a current obligation characterized by the fact that the performance of the current obligation is unlikely to result in an outflow of economic benefits from the enterprise, or that the amount of the current obligation cannot be reliably measured.

3. The performance conditions of the two are different. The obligation is a current obligation undertaken by the enterprise, which means that the obligation related to the contingency is the obligation that the enterprise has assumed under the current conditions, and the enterprise has no other realistic choice but to fulfill the current obligation.

A latent obligation is a possible obligation whose outcome depends on uncertain future matters.