Question

Could anyone help me identify which items are operating assets and operating liabilities?

Consolidated Statement of Financial Position - CAD ($) $ in Millions Current assets Cash and cash equivalents Accounts receivable Contract assets Inventories Prepayments Income taxes recoverable Derivative financial assets Total current assets Property, plant and equipment Intangible assets Investment in equity accounted investees Deferred tax assets Derivative financial assets Other assets Total assets Current liabilities Accounts payable and accrued liabilities Less: current portion Income taxes payable Document and Entity Information Consolidated Statement of Finan

Answer 1

Operating Assets are assets needed for operations ie. to produce revenue.

Non operating assets are assets which are not needed for operations but may produce income .

Examples of Operating assets are prepaid expenses. inventory, accounts receivable, Property, plant and equipment, intangible asset like technology needed to produce

Non operating assets are assets not required for operations like marketable securities, loans receivable, vacant unused land or unused plant and machinery.

In this case following assets are operating assets:

Accounts Receivable

Contract Assets

Inventories

Prepayments

Income Tax Recoverable

Property Plant and Equipment

Intangible Assets

Deferred Tax assets

Operating Liabilities are short term liabilities necessary for the operations of the company.

These liabilities normally do not bear any interest cost.

Examples of Operating Liabilities are Accounts Payable ,income tax payable, wages and salaries payable, accrued expenses.

Non Operating Liabilities are generally interest bearing long term liabilities like Bonds payable. Generally non operating liabilities are interest bearing financial liabilities not related to operations.

In this case following Liabilities are operating Liabilities:

Accounts Payable and accrued liabilities

Income tax payable

Deferred revenue

Contract liabilities

Employee benefit obligations

Deferred tax liability