Category

2.1. Liabilities and Equity

Theory

00:00 What is equity and liabilities;
00:38 Liability & equity under UAE IFRS framework;
01:16 IFRS definitions & corporate tax impact;
02:00 Equity classification under IFRS in UAE;
02:38 Accounting & Tax interactions in UAE;
03:18 Liability and equity closing principles.

Practice

00:00 ERP Company Setup & Parameters;
00:38 Creating a New Company;
01:30 Company Master Data;
02:44 Updating the Chart of Accounts;
04:02 Link Bank Account to GL Account;
05:01 Description of Product Groups;
06:08 Operation Types;
09:03 Document Series;
10:19 VAT Rates;
11:03 General Settings;
12:27 Entering Fixed Assets;
18:03 How to enter Current Assets;
20:23 Entering Opening Balances of Liabilities and Debts;
20:43 Entering Other Account Balances

Key Terms & Definitions

Liability — A present obligation arising from a past event that is expected to result in a future outflow of resources (IFRS Conceptual Framework).

Present Obligation — An obligation that the entity has no realistic alternative to settle, forming the basis for liability recognition.

Financial Liability — A contractual obligation to deliver cash or another financial asset, or to exchange financial instruments under unfavorable terms (IAS 32).

Current Liabilities — Liabilities expected to be settled within 12 months or within the operating cycle. Examples: Accounts Payable, Short-term Loans, Taxes Payable.

Non-Current Liabilities — Obligations due after more than 12 months, such as long-term loans. Examples: Long-term Loans, Bonds Payable.

Provisions — Liabilities of uncertain timing or amount, recognized under IAS 37 (e.g., warranties, legal claims).

Equity — The residual interest in the assets of the entity after deducting all liabilities.

Share Capital — The value of shares issued to owners, representing their initial and subsequent investment.

Retained Earnings — Accumulated profits retained in the business after dividends.

Reserves — Equity components set aside for specific purposes, including revaluation or statutory reserves.

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