FINANCIAL LIABILITIES
FINANCIAL LIABILITIES
(enterprises, companies, firms)
mandatory payments, settlements due to financial and contractual relations.
Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. - 2nd ed., corrected. Moscow: INFRA-M. 479 p.. 1999 .
Economic dictionary. 2000 .
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Financial obligations- (FINANCIAL LIABILITY) Any obligation that is a contractual obligation: a) to transfer cash or other financial assets of another company; or b) exchange financial instruments with another company on terms… … Finance and stock exchange: glossary of terms
Encyclopedic Dictionary of Economics and Law
Financial obligations- Accounts payable, bank loans, loans and reserves. clause 1.2. Guidelines on the inventory of property and financial obligations, approved. Order of the Ministry of Finance of the Russian Federation dated June 13, 1995 N 49 ... Vocabulary: accounting, taxes, business law
financial obligations- obligatory payments, settlements due to financial contractual relations ... Dictionary of economic terms
FINANCIAL LIABILITIES OF THE ENTERPRISE- obligatory payments of the enterprise due to its financial and contractual relations. F.o.p. arise in regulated relations with budgets, extra-budgetary (social, special, public) funds, banks and other credit institutions, ... ... Financial and Credit Encyclopedic Dictionary
Short-term financial liabilities- (Short term liabilities) - all types of borrowed funds used by the enterprise financial resources with a principal maturity of up to 1 year (short-term bank loans; short-term loans of non-banking institutions; issued ... ... Economic and Mathematical Dictionary
short term financial liabilities- All types of borrowed funds used by the enterprise with a principal maturity of up to 1 year (short-term bank loans; short-term loans of non-bank institutions; issued short-term bonds of the enterprise; ... ... Technical Translator's Handbook
Financial instruments- (financial instruments) financial obligations and rights traded on the market, usually in documentary form. F.i. is any contract that results in the emergence of both a financial asset in one enterprise and a financial ... ... Economic and Mathematical Dictionary
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72. Financial instruments, financial assets and financial liabilities, their concepts, types and characteristics.
A financial instrument is any contract that simultaneously gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Contracts for the supply of goods, under which the obligations of either party may be settled in cash or through another financial instrument, shall be accounted for as if they were financial instruments, except for contracts for the supply of goods that (a) were entered into with the purpose of satisfying the enterprise's expected needs for the purchase, sale or use of goods and continue to meet these needs, (b) were intended for these purposes at the conclusion and (c) it is expected that repayment of obligations thereon will be made in the form of delivery of goods.
A financial asset is any asset that is: (a) cash; (b) a contractual right to receive cash or another financial asset from another entity; (c) contractual right to exchange financial instruments with another enterprise on potentially favorable terms; or (d) an equity instrument of another entity.
Currency (cash) is a financial asset because it is a medium of exchange and thus is the basis on which all transactions are measured and presented in financial statements. A cash deposit with a bank or similar financial institution is a financial asset because it represents a depositor's contractual right to receive money from that institution or to write a check or similar instrument on the balance of an account to a creditor in payment of a financial liability.
Common examples of financial assets with a contractual right to receive cash in the future and financial liabilities with a contractual obligation to make future payments are: (a) trade receivables and payables; (b) notes receivable and payable; (c) outstanding loans receivable and payable; and (d) the amounts due in respect of the Notes receivable and payable.
A financial liability is any obligation under a contract: (a) to deliver cash or another financial asset to another entity; or (b) exchange financial instruments with another entity on potentially unfavorable terms.
An entity may have a contractual obligation that can be settled either in financial assets or in the form of its own equity securities. In such a case, if the number of equity securities required to settle the obligation varies with changes in their fair value such that the total fair value of the equity securities used to settle the obligation is always equal to the amount of the contractual obligation, then the holder of the obligation does not is exposed to the risk of gaining or losing from the price fluctuations of its equity securities. Such a liability should be accounted for as a financial liability of the entity.
An equity instrument is any contract evidencing the right to a share of an entity's assets, less all of its liabilities.
Examples of equity instruments are common shares, certain types of preferred shares, and warrants or options to subscribe or purchase the issuer's common stock. An undertaking's obligation to issue its own equity instruments in exchange for another party's financial assets is not potentially disadvantageous because it leads to an increase in equity and cannot result in a loss for the undertaking. The possibility that the existing owners of the entity's equity interests may find that the fair value of their interest decreases as a result of this liability does not make it unprofitable for the entity itself.
An option or similar instrument acquired by an entity that gives it the right to repurchase its own equity instruments is not a financial asset of that entity. The entity will not receive cash or another financial asset by exercising this option. The exercise of the option is not potentially beneficial for the company because it leads to a decrease in equity and disposal of assets. Any change in equity reflected in the entity's accounting and the result of the repurchase and cancellation of its own equity instruments is a transfer of equity between those equity instrument holders who give up their share of the entity's equity and those who retain their interests but not profits. or loss to the business itself.
Monetary financial assets and financial liabilities (also referred to as monetary financial instruments) are financial assets and financial liabilities that have fixed or determinable amounts of money to be received or paid.
Fair value is the amount of cash that is sufficient to acquire an asset or settle a liability in a transaction between knowledgeable, willing, and unrelated parties.
Market value is the amount of cash that could be received to sell or paid to acquire a financial instrument in an active market.
Financial instruments include both primary instruments, such as receivables and payables and equity securities, and derivative instruments, such as financial options, futures and forward contracts, interest rate and currency swaps. Derivative financial instruments, whether or not recognized on the balance sheet, meet the definition of a financial instrument and are therefore subject to IAS 32.
Physical assets such as inventories, fixed assets, leased assets, and intangible assets such as patents and trade marks are not financial assets. The control of such physical and intangible assets creates the ability to secure the inflow of cash or other financial assets, but it does not give rise to an effective right to receive cash or other financial assets.
Assets similar to advance expenditures, the future economic benefit of which is the receipt of goods or services, in contrast to the right to receive cash or another financial asset, are not financial assets. Similarly, items such as deferred income and most guarantees are not financial liabilities because the likely outflow of economic benefits associated with them is in the provision of goods and services rather than cash or another financial asset.
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Financial liabilities arise from contractual relationships and require the payment of cash or the transfer of other financial assets to other companies and organizations.
Financial liabilities should not be confused with equity financial instruments, which are not expected to be settled in cash or other financial assets.
Financial liabilities held for trading include liabilities assumed by an entity to deliver securities in a short-term sale if this organization does not own these securities at the time of their sale. Financial liabilities held for trading also include all derivative liabilities not used for hedging.
A financial liability, or debenture, is an unsecured bond. Debenture holders are the corporation's general creditors, whose rights are guaranteed by the unmortgaged property of the borrower.
Financial liabilities not reflected in the balance sheet should in any case be made public.
Financial liabilities include all payments related to the implementation of the project being developed: repayment of the loan, payment of bills, payment of salaries, transfer of taxes.
Financial liabilities arise from contractual relationships and require the payment of cash or the transfer of other financial assets to other companies and organizations. Financial liabilities also include an upcoming exchange of financial instruments under an agreement with another company on potentially unfavorable terms. When classifying financial liabilities, one should keep in mind the limitations associated with that. On the other hand, share options or other obligations to transfer one's own equity financial instruments to another company are not financial liabilities. They are accounted for as equity financial instruments.
Financial liabilities should not be confused with equity financial instruments, which are not expected to be settled in cash or other financial assets. For example, stock options are satisfied by transferring a certain number of shares to their owners. These options are equity instruments and not financial liabilities.
A financial obligation of a municipality that is not secured by any collateral other than the solvency of the issuer. Such bonds are direct obligations of the municipality.
Treasury financial notes are issued for one and two years.
The financial obligations of the insured are to pay premiums. If the policyholder pays the entire amount at once at the conclusion of the contract, such a contribution is called a lump sum. If he fulfills his obligations during the entire period of insurance, he pays annual premiums, which he pays in installments during the year, usually monthly. Consider the process of formation of an insurance fund on the example of mixed life insurance.
Since financial obligations are paid in cash, coming to the company's current account, the most important element current assets businesses - cash.
Financial liabilities include accounts payable to suppliers and contractors, under loan and credit agreements, including debt on issued and accepted promissory notes, placed bonds, issued guarantees, avals and other contingent liabilities. Financial liabilities include the tenant's debt under a finance lease, as opposed to an operating lease, which involves the return of the leased property in kind.
The subject of financial and legal obligations that arise from laws or other regulatory legal acts are always monetary funds.
Most of the signs of an obligation distinguished as distinctive features of this type of legal relationship, do not determine its belonging exclusively to the sphere of civil law. The emergence of the obligation of an individual or legal entity to perform certain actions to transfer material blessings occurs within the framework of public law regulation established by financial legislation.
Definition 1
That is, law of obligation is a complex institution covering private and public property relations associated with the movement of material goods.
The concept of financial liability
Definition 2
Financial obligations are property relations, the legal content of which is the right of the creditor to require the debtor to perform certain active actions to provide specific material benefits.
Obligations as a legal form existence economic relations, are traditionally considered by legal science from the point of view of their inclusion in the subject of civil law.
Financial obligations, as a type of obligation relationship, have a number of common features with civil law obligations, but differ from them in public law nature. Financial liabilities arise from contractual relationships and require the payment of cash or the transfer of other assets to other companies and organizations.
Sources of financial liabilities are:
- loan agreements;
- bank deposit (deposit) agreements;
- bank account agreements;
- contracts, the objects of which are:
- securities
- precious metals;
- foreign currency;
- cash;
- rights of claim on derivative financial instruments;
- rights of claim under loan agreements and credit agreements;
- rights of claim under bank deposit (deposit) agreements.
The parties to various financial obligations can be:
- Russia represented by federal executive authorities;
- Central Bank of the Russian Federation;
- international financial institutions, of which the Russian Federation is a member;
- credit organizations;
- professional participants in the securities market, with the exception of registrars and financial advisors;
- insurance organizations;
- investment and pension funds, as well as their management companies;
- professional participants in the derivatives market, with the exception of financial advisors;
- commodity exchange participants.
Financial liabilities may be terminated on the basis of netting.
Figure 1. Financial liabilities. Author24 - online exchange of student papers
tax liability
By virtue of a tax obligation, one person (debtor) is obliged to perform a certain action in favor of another person (creditor) to pay money, and the creditor has the right to demand that the debtor fulfill his obligation.
Remark 1
Thus, the tax liability relationship is a legal relationship, by virtue of which a public-territorial entity is entitled to demand monetary provision from a subject of private law.
As well as civil-legal legal obligations, the tax obligation is a relative legal relationship, since its participants are strictly defined. The authorized party is represented by a public legal entity, which may be: the Russian Federation, subjects of the Russian Federation and local governments. The obligated parties to the tax liability are individuals and legal entities, obliged to make appropriate payments to the budgets of different levels. The tax liability is an active legal relationship, since the creditor has the right to demand active actions from the debtor.
Since the claim of the tax creditor is aimed at obtaining a sum of money, which is a material good, the tax liability belongs to the category of property legal relations.
Unlike civil liability, tax liability arises solely from the requirements of the law. And the principle of autonomy of will, which is characteristic of a civil liability, is absent in tax liabilities. Their subject matter may be only monetary funds in the currency of the Russian Federation. It is not possible to replace the subject of a tax obligation with other property.
Budget Commitment
The expenditure of budgetary funds provides for the formation of appropriate obligations. They assume that between Russian Federation and the subject-recipient of the funds of the corresponding budget arises a material legal relationship.
That is, budgetary obligations form the obligation of the state to specifically defined recipients to provide funds.
Unlike tax liabilities, budget liabilities can arise on the basis of an agreement between Russia, as a debtor, and other private and public entities, as creditors. But the possibility of budget obligations arising on the basis of an agreement does not transfer these relations into the sphere of civil law regulation, since the spending regime state funds is established by the norms of financial law.
Since we are talking about the provision of funds from the relevant budget fund (federal, regional or municipal), only cash can be the subject of an obligation. Thus, the provision instead of money of any other material goods for budget obligations is impossible. In addition, it is unacceptable to include funds from the budget into the agreement on the provision of funds. alternative way fulfillment of this obligation.
Remark 2
The forms of allocation of funds from the budget can be different, for example, interbudgetary transfers are provided in the form of grants, subsidies or subventions.
In budget obligations, the creditor does not have the opportunity to use the funds received at his own discretion, his rights to dispose of the allocated money are limited by the targeted nature of their use. All budgetary funds are provided to the recipient with an indication of what exactly the allocated money can be spent on.
If the budget of a constituent entity of the Federation does not have enough funds to implement regional social programs, then it needs subsidies to equalize budgetary security. And a subsidy for co-financing obligations arising from the exercise of the powers of state authorities does not meet the interests of the regional authorities, since it implies a different direction of spending budget funds.
