Some help figuring out which are non-operating liabilities.
I'm looking through the notes of a company on Payables and Accrued Charges, and trying to separate the operating liabilities from the non-operating ones, but am having a hard time with a few. I'd appreciate any help I can get, here.
The accounts:
Trade accounts Income taxes Accrued compensation Deferred revenue Dividends Accrued interest Other taxes Current portion of asset retirement obligations and accrued environmental costs Accrued deferred share units Current portion of pension and other post-retirement benefits Other payable and other accrued charges
I'm fairly sure that dividends and accrued interest are considered non-operating? I excluded Income Taxes Receivable from Operating Current Assets, was that a mistake? I'm thinking I should add that back because Income taxes are considered operating liabilities. By that rationale, I should keep other taxes in operating liabilities.
I'm not sure about the AROs, accrued deferred shares, pension and other payables. Any help here would be great.
I think the following should be non-operating liabilities: Income Taxes, Dividends, Accrued Interest, Other Taxes, as well as Current portion of asset retirement obligations and accrued environmental costs, Accrued deferred share units and Current portion of pension and other post-retirement benefits. I'm unsure about the last one.
Thanks for the reply.
I've been going through Valuation: Measuring and Managing the Value of Companies, and the author mentions that "Operating current liabilities include those liabilities that are related to the ongoing operations of the firm. The most common operating liabilities are those related to suppliers (accounts payable), employees (accrued salaries), customers (deferred revenue), and the government (income taxes payable.)"
So, I'm not so sure that Income Taxes are a non-operating liability. And I think that makes sense, considering the company is potentially liable for every dollar it makes.
I think the following should be non-operating liabilities: Income Taxes, Dividends, Accrued Interest, Other Taxes, as well as Current portion of asset retirement obligations and accrued environmental costs, Accrued deferred share units and Current portion of pension and other post-retirement benefits. I'm unsure about the last one.
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