Finance / July 19, 2018 / Isabella Mccray
The calculation of EV is affected by the assumptions regarding timing of the cash flows within a projection interval. The mid-period convention assumes that the UFCFs occur at the middle of each projection interval, while the end-period convention assumes all UFCFs occur at the end of each interval. In practice, the end-period convention is often used because it is more conservative (the UFCFs are discounted at a time more distant from the present).
Liability is a financial obligation made by a company to pay certain amount for the goods or services received by the company in the past. The short-term legal agreements which are required to be paid within one year are referred as current liabilities. Current liabilities are reported under liabilities on balance sheet.
We Also Think You’ll Like