Introduction
A liability is a debt or obligation that arises from past events. The liabilities section is split into current and non-current classifications on the balance sheet. A current liability is an obligation that is expected to be settled within twelve months. A non-current liability, also known as a long-term liability, is an obligation resulting from a previous event that is not due within one year. The fund balance is the balance remaining after assets have been used to satisfy the outstanding liabilities. This book is focused on providing information about the recording of and controls surrounding liabilities and the fund balance.
What you will find here
Accounts Payable: This portion of the book will provide you with an understanding of the elements of the accounts payable line on the balance sheet. It will explain purchasing controls, ethics, and answer frequently asked questions related to the accounts payable process at IU.
Accrued Liabilities: This portion of the book will provide an overview of the accrued liabilities line on the balance sheet. It will explain how the accrual method of accounting employed by IU impacts the accrued liabilities line on the balance sheet.
Unearned Revenue: This portion of the book will provide an overview of the unearned revenue line of the balance sheet at Indiana University. This line represents an obligation, for IU, to fulfill a future commitment.
Bonds: This portion of the book provide guidelines for bonds payable, including information about the principal amount, interest payments, and general bond information and disclosures.
Other Liabilities: This portion of the book will cover liabilities that do not fit readily in any of the defined liability categories that appear on the other liabilities line of the balance sheet.
Fund Balance: This portion of the book will provide guidance on accounting for the fund balance at Indiana University. The fund balance represents the remaining balance after the assets have been used to satisfy the outstanding liabilities.
Glossary: The glossary is a repository of both general and Indiana University specific accounting terminology.