Replying to Avatar hh

I am not saying the examples you give of certain liabilities as a form of funding are wrong - I agree with them.

But your reduction of ALL liabilities to funding is incomplete, as can be seen with taxes.

Taxes owed are a liability on a company's balance sheet and they do not represent any source of funding.

They do represent, like all other liabilities, a future financial obligation towards another entity, in this case the government.

This is what all liabilities have in common.
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allen 2y ago

taxes only ever go on the balance sheet if they are deferred, in which case they have created a funding need. this is literally what ties the entire concept of a balance sheet and accruals accounting together.

EVERY liability represents the matching of funding to allocation. that it is an obligation to somebody is only ever a coincidence.

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hh 2y ago

Your original note said "source of funding", not "source of need of funding", though.