Examples of liabilities not considered liabilities of a manufacturing segment by AASB 114 include:
A) Product warranty provisions.
B) Accounts payable.
C) Customer advances.
D) Liabilities relating to finance leases.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 114 specifies that liabilities relating to finance leases should be accounted for separately under AASB 117. Product warranty provisions and customer advances are both liabilities that are specifically mentioned as being part of the manufacturing segment, while accounts payable would generally be considered a liability of any segment. Therefore, the only option left is D, liabilities relating to finance leases, which are excluded from the manufacturing segment under AASB 114.

Examples of Liabilities Not Considered Liabilities of a Manufacturing Segment