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When the reform leads to shifts from searching into retirement, the result is negative (net pension liabilities increase).
Massive declines in the stock market also negatively impacted two of Cigna's reinsurance businesses; the company's liabilities increase when equity investment returns decline and interest rates decrease.
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However net liabilities increased from £19.4m in 2008 to £22.2m last year.
As interest rates fall, the present value of these liabilities increases.
"Total liabilities increased in cash terms but the ratio of assets to liabilities is still above the all-time low of 76.4% in May 2012".
Although pension liabilities increased by approximately 28.1%, their results reveal poor disclosure quality in firms in which pension liabilities are not of great importance.
First, shareholders' equity, or ING's total assets minus its liabilities, increased to 22.3 billion euros ($31.5 billion) in the second quarter, from 19.4 billion euros ($27.4 billion) in the last quarter.
In addition, the firm's current ratio (current assets divided by current liabilities) increased from 2.82 to 3.06 in the most recent year, and its long-term debt/assets ratios dropped from an already-low 0.01 to 0. Those are both qualities that Piotroski looked for, and signs that this stock is a strong one that's being overlooked by Wall Street.
Three years later, his liabilities increased once more when he took out a $135,000 home-equity loan for improvements on his new home.
By letting the Bush-era tax cuts expire, this average business owner will see his or her tax liability increase by about $2,100.
As they use the vacation days, the firm reduces the liability, increasing its reported earnings for the period.
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