This case gives three examples of recognition and measurement of liabilities. The first is designed to recognize when the employees render the services for which the period of future benefits are earned, is there any unused vacation, sick and personal days at the end of the year led to a commitment to the future of the company. The second focuses on the integration of debt at a discount and at a premium - the difference between the coupon payment, payable in cash each period, and the recognition of interest expense for the period. The third includes commitments incurred in the current payment for which payment will be deferred for ten years. Although the problem is a special deferred compensation, the principle can be extended to involve the recognition of pension and other post-employment benefit costs. "Hide
by Robert S. Kaplan Source: Exercises 2 pages. Publication Date: 01 Oct 2001. Prod. #: 102035-PDF-ENG
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