What is a Quasi Liability? - ProProfs Discuss
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What is a Quasi-Liability?



Asked by Bramwell, Last updated: Nov 25, 2021

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2 Answers

C.Mila

C.Mila

C.Mila
C.Mila

Answered May 01, 2018

A moderately darken arrangement under U.S. GAAP which speculate specific situations, a firm may dispose of a shortage in its held income account by repeating resources, liabilities, and value in a way like a liquidation. A firm's investors must consent to permit the accounting change, which basically resets the firm's books as if another company had acquired the benefits and liabilities of the old firm.

Despite the fact that the possibility of quasi-reorganization has seen some recharged intrigue, the arrangement is still once in a while connected practically speaking. The possibility of quasi-reorganization holds request for some as the possibility of a "fresh start" is more energizing to speculators than gradually uncovering from a vast deficiency of held income.

Some additionally contend that quasi-reorganization could be a compelling strategy for all the more precisely resetting the accounting adjusts of a firm when a genuine drop in resource esteems isn't sufficiently reflected. Quasi-reorganization remains very disputable, nonetheless, since it isn't genuinely a difference in financial reality, but instead a technique to influence books to seem greater.

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

The dictionary definition of quasi is: to some degree; in some manner.a quasi-liability is considered, to some degree, a liability, but it doesnt require actualpayment.an example of a quasi-liability is minority interest. minority interest on a balance sheetrepresents the interests that others have in a subsidiary of the parent company. eventhough it appears as a liability, it does not represent money that would have to be paidto other owners. it is simply there to better reflect the true nature of the parentcompanys financial standing.
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