Net Liabilities means the total consolidated assets of the Group minus total consolidated liabilities of the Group (other than the liability in respect of the Shareholder Loan and the New Loan, if any); it being referred to as "Net Asset Value" if it is a positive figure, and "Net Liabilities" if it is a negative figure (as applicable).
What is net current liabilities?
Net current liabilities: Net current liabilities refer to the current assets less current liabilities of an organisation. To have net current liabilities, the current liabilities must be larger than the current assets. This is usually because the company has very little inventories or does not give credit and therefore has no receivables.
What is the net debt of a company?
The net debt figure is used as an indication of a business's ability to pay off all its debts if they became due simultaneously on the date of calculation, using only its available cash and highly liquid assets. ... Net debt is calculated by determining the company's total debt.
What are net liabilities under GAAP?
Net Liabilities means liabilities determined in a manner consistent with GAAP but excluding (i) current and deferred Tax liabilities and (ii) any other Retained Liabilities. Net Liabilities means all direct liabilities plus reinsurance assumed minus reinsurance ceded, except as otherwise expressly excluded below.
What are liabilities and assets?
Liability is a fancy word for debt, or something that you owe. Once you know your total liabilities, you can subtract them from your total assets, or the value of the things you own — such as your home or car — to calculate your net worth.
What are net liabilities accounting?
Net Current Liabilities means the difference between the current Assets of the Business and the current Assumed Liabilities of the Business computed in accordance with GAAP consistently applied by the Company in the Financial Statements.
What is an example of a liabilities?
Liabilities are any debts your company has, whether it's bank loans, mortgages, unpaid bills, IOUs, or any other sum of money that you owe someone else. If you've promised to pay someone a sum of money in the future and haven't paid them yet, that's a liability.
What are the 3 types of liabilities?
There are three primary classifications for liabilities. They are current liabilities, long-term liabilities and contingent liabilities. Current and long-term liabilities are going to be the most common ones that you see in your business.
What is the formula for net current liabilities?
Mathematically, the Current Liabilities Formula is represented as, Current Liabilities formula = Notes payable + Accounts payable + Accrued expenses + Unearned revenue + Current portion of long term debt + other short term debt.
What is liabilities in simple words?
A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
What are liabilities Give 5 example?
Liabilities is an account in which the company maintains all its records such as debts, obligations, payable income taxes, customer deposits, wages payable, expenses incurred.
Are liabilities debt?
Comparing Liabilities and Debt The main difference between liability and debt is that liabilities encompass all of one's financial obligations, while debt is only those obligations associated with outstanding loans. Thus, debt is a subset of liabilities.
What is an asset vs liability?
asset meaning: Liabilities: Existing debts a business owes to another business, vendor, employee, organization, lender, or government agency. Liabilities can help owners finance their companies (e.g., loans). Assets: Items or resources of value that the business owns.
Is rent a liability or asset?
Rent Payable is a liability account in the general ledger of the tenant which reports the amount of rent owed as the date of the balance sheet.
Is Net current liabilities the same as current liabilities?
Net current liabilities refer to the current assets less current liabilities of an organisation. To have net current liabilities, the current liabilities must be larger than the current assets. This is usually because the company has very little inventories or does not give credit and therefore has no receivables.
What are net current liabilities assets?
Net current assets is the aggregate amount of all current assets, minus the aggregate amount of all current liabilities. There should be a positive amount of net current assets on hand, since this implies that there are sufficient current assets to pay for all current obligations.
What are the two types of liabilities?
Classification of LiabilitiesCurrent liabilities (short-term liabilities) are liabilities that are due and payable within one year.Non-current liabilities (long-term liabilities) are liabilities that are due after a year or more.More items...•
What are 10 examples of liabilities?
Current Liability Accounts (due in less than one year):Accounts payable. Invoiced liabilities payable to suppliers.Accrued liabilities. ... Accrued wages. ... Customer deposits. ... Current portion of debt payable. ... Deferred revenue. ... Income taxes payable. ... Interest payable.More items...•
What is a liability or asset?
Assets are what a business owns and liabilities are what a business owes. Both are listed on a company's balance sheet, a financial statement that shows a company's financial health. Assets minus liabilities equals equity, or an owner's net worth.
What are assets and liabilities examples?
Examples of assets and liabilitiesbank overdrafts.accounts payable, eg payments to your suppliers.sales taxes.payroll taxes.income taxes.wages.short term loans.outstanding expenses.
What are the two types of liabilities?
Classification of LiabilitiesCurrent liabilities (short-term liabilities) are liabilities that are due and payable within one year.Non-current liabilities (long-term liabilities) are liabilities that are due after a year or more.More items...•
What is net current liabilities?
Net Current Liabilities means the current liabilities of the Company and its Subsidiaries (including accounts payable) as of immediately prior to the Effective Time, as determined under GAAP and on a basis consistent with the Company’s accounting methods, treatments, principles and procedures used in the preparation of the Company Financial Statements, but excluding (a) the amount of [*], (b) accrued [*], (c) accrued expenses of [*], (d) deferred real property rent under the Company Leases, (e) capitalized leases (under GAAP), (f) accrued expenses for [*], (g) expenses incurred in connection with the [*] and (h) Taxes.
What is total liabilities?
Total Liabilities is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, and current portion of Subordinated Debt permitted by Bank to be paid by Borrower, but excluding all other Subordinated Debt.
What is accrued liability?
Accrued Liabilities means any and all accrued liabilities of the Corporation incurred in the ordinary course of business, including accruals for vacation pay, customer rebates and allowances for product returns.
What is contingent liability?
Contingent Liabilities means, respectively, each obligation and liability of the Credit Parties and all such obligations and liabilities of the Credit Parties incurred pursuant to any agreement, undertaking or arrangement by which any Credit Party either: (i) guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including without limitation, any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (ii) guarantees the payment of dividends or other distributions upon the shares or ownership interest of any other Person; (iii) undertakes or agrees (whether contingently or otherwise): (A) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor; (B) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition of any other Person; or (C) to make payment to any other Person other than for value received; (iv) agrees to lease property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability of such other Person to make payment of the indebtedness or obligation; (v) to induce the issuance of, or in connection with the issuance of, any letter of credit for the benefit of such other Person; or (vi) undertakes or agrees otherwise to assure or insure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation set forth herein) be deemed to be the outstanding principal amount (or maximum permitted principal amount, if larger) of the indebtedness, obligation or other liability guaranteed or supported thereby.
What is consolidated net working capital?
Consolidated Net Working Capital means (a) all current assets of the Company and its Restricted Subsidiaries except current assets from Oil and Gas Hedging Contracts, less (b) all current liabilities of the Company and its Restricted Subsidiaries, except (i) current liabilities included in Indebtedness, (ii) current liabilities associated with asset retirement obligations relating to oil and gas properties and (iii) any current liabilities from Oil and Gas Hedging Contracts, in each case as set forth in the consolidated financial statements of the Company prepared in accordance with GAAP (excluding any adjustments made pursuant to FASB ASC 815).
What is consolidated net assets?
Consolidated Tangible Net Assets means, on any date of determination and with respect to any Person at any time, the total of all assets (including revaluations thereof as a result of commercial appraisals, price level restatement or otherwise) appearing on the consolidated balance sheet of such Person and its Consolidated Subsidiaries most recently delivered to the Lenders pursuant to Section 5.01 (i) as of such date of determination, net of applicable reserves and deductions, but excluding goodwill, trade names, trademarks, patents, unamortized debt discount and all other like intangible assets (which term shall not be construed to include such revaluations), less the aggregate of the consolidated current liabilities of such Person and its Consolidated Subsidiaries appearing on such balance sheet.
What is current asset?
Current Assets means, with respect to the Borrower and the Restricted Subsidiaries on a consolidated basis at any date of determination, all assets (other than cash and Cash Equivalents) that would, in accordance with GAAP, be classified on a consolidated balance sheet of the Borrower and its Restricted Subsidiaries as current assets at such date of determina tion, other than amounts related to current or deferred Taxes based on income or profits (but excluding assets held for sale, loans (permitted) to third parties, pension assets, deferred bank fees and derivative financial instruments).
