Company Balance-sheet Liabilities

The purpose of accounting is to provide information users with economic information that facilitates the decision making. Ever since its birth, one of the objectives of accounting is reflection. To be more specifically, the major role of accounting is recording, classifying and reporting the financial transactions of an organization. The other roles such as monitoring normally derived from the accounting's reflection function. An accounting system can provide a source of information from which managers, investors and creditors may gain an understanding of an organization's economic condition and its financial situation. Among these information, liability information is often considered by information users. It was recorded that a quite number of companies in bankruptcy are choked by too much debt. Since the traditional accounting information disclosure mainly focuses on the liabilities which are included in the financial statements, it neglects some nontraditional liability terms which are not allowed to be included in the financial statements according to the accounting standards. This may lead to negative influence to an organization's operation and further hinder the development of accounting. My paper is going to investigate those nontraditional liability terms. For the convenience of research, the enterprise which will be referred to in my paper is a broad concept which may include economic entities such as listed state-owned company, non-listed state-owned company, foreign invested company, collective owned company and private company.One Contribution to theoryAccounting is an information system established specifically or principally as a device to reflect and monitor the economic conditions of an organization through some specific techniques and accounting...