Short and long-term classification of certain assets and liabilities (Part II)
3. Summary of changes made to current and non-current assets and liabilities
Let’s summarize the changes made to the balance sheet to properly reflect the current (short-term) and non-current (long-term) portions of the three items we discussed in this article. The table below shows major balance sheet captions before and after the changes:
Before |
After |
Change |
|
Assets |
|||
Total current assets |
8,924 |
8,848 |
(76) |
Property, plant and equipment (net) |
8,220 |
8,220 |
0 |
Other assets |
0 |
76 |
76 |
Total Assets |
17,144 |
17,144 |
0 |
Liabilities and Stockholder's Equity |
|||
Total current liabilities |
3,853 |
5,358 |
1,505 |
Long-term note payable |
3,953 |
2,315 |
(1,638) |
Other liabilities |
0 |
133 |
133 |
Total stockholder's equity |
9,338 |
9,338 |
0 |
Total Liabilities and stockholder's equity |
17,144 |
17,144 |
0 |
On the assets side, current assets decreased by $76 while other assets (non-current assets) increased by $76. On the liabilities side, current liabilities increased by $1,505, the long-term note payable decreased by $1,638 and other liabilities (non-current liabilities) increased by $133.
Of course, the changes should be evaluated from the materiality standpoint (which is different for different companies), which may or may not actually require making the changes.
- What are differences between current and non-current assets or liabilities?
- What are contingent liabilities?
- How to prepare balance sheet
- How to account for an increase in the useful life of a fixed asset
- Lease accounting for escalating rent payments or rent holidays
- Short and long-term classification of certain assets and liabilities (Part I)
- Revaluation of fixed assets under US GAAP
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