Give two (2) cases when the conditional obligation is valid although the condition depends entirely upon the will of the debtor.

Q: one key difference between option contracts aND FUTURE CONTRACTS IS THAT IN AN OPTION CONTRACT, THE…

A: Option Contract-An options contract is a contract between two parties to facilitate a potential…

Q: What is the debt with a subjective acceleration clause in the exposure draft, Topic 470?

A: The is based on the concept of accounting of debt and accounting treatment of debt in books of…

Q: Under what conditions should a contingent liability berecorded?

A:

Q: Why would the existence of conditions subsequent and precedent affect the discharge of a contract?

A: A contract is an agreement between more than one person to perform the duties mentioned in the…

Q: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

A: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

Q: contingent liabilities? Which two conditions have to be met in der to report a contingent liability…

A: The foundation for determining investor returns and analyzing a company's financial structure is the…

Q: Fair Value (Liabilities) What is Fair Value for a liability? What would be an e.g? Please Explain.

A: The objective of this question is to understand the concept of 'Fair Value' in the context of a…

Q: A contingent liability: O Is always of a specific amount Is a potential obligation that depends on a…

A: Solution: A contingent liability is a liability that may occur depending on the outcome of an…

Q: Obligations that may arise from past transactions only if certain events occur in the future are…

A: The objective of the question is to understand the concept of contingent liabilities in accounting.

Q: To be recorded as a liability, does the obligation have to be absolute?

A: Accounts payable, short-term loans, interest payments, bank overdrafts, and other similar short-term…

Q: Pursuant to the conceptual framework, for an item to be characterised as a liability the definition…

A: Two Examples of Liabilities: 1) Trade payables: Satisfy all the three essential characteristics of…

Q: Contingent liabilities are obligations that may or may not materialize

A: Contingent liabilities are obligations that may or may not materialize will be explained:

Q: Which of the following arises when the seller's right to consideration from a customer is…

A: A receivable is recognized by the entity when the entity's right to consideration is unconditional…

Q: What is an onerous contract? Give two examples of an onerous contract.

A: When the cost of carrying out unavoidable obligations exceeds the benefit expected to be received…

Q: What is an option? How does an Option differ from a forward or future contract?

A: Derivative Security: A derivative is financial security whose price and value are determined based…

Q: Which of the following liabilities would be considered nonrecourse?

A: "As the student have not been given the options to choose the nonrecourse liabilities, I will give…

Q: Which of the following is not a condition in the determination of when a valid contract exists: O…

A: In accordance with IFRS 15, a contract with a customer is said to exists only if the following…

Q: What exceptions are there to contracts that normally require a writing to be enforceable?

A: It is being written under the law that all agreement which are in writing could only be enforceable…