In explaining the meaning of obligation in the definition of a liability, the Conceptual Framework states: A. That an obligation is a duty or responsibility that an entity has no practical ability to avoid B. Than an obligation can arise from a duty or responsibility conditional on a future action that the entity itself may take, if the entity has no practical ability to avoid taking that action  C.  That an obligation can arise from an entity's customary practices,  published policies or specific statements, if the entity has no practical ability to avoid those practices, policies or statements  D. All of the above

Q: A provision should be recognized when: O a. Present obligation from a past event, outflow that will…

A: Provision means an amount set side now to be payable in future because of some past event and…

Q: Determine when a liability can be classified as a noncurrent obligation.

A: Liabilities are obligations arising from past transactions and payable in assets or services in…

Q: ecide to deviate from any IFRS statement, then the entity mu

A: Corporation - A corporation is a legitimate commercial entity that was created by shareholders,…

Q: Which of the following is not considered as a characteristic of a liability?

A: The balance sheet comprises two-part, what the company owns (Assets) and what the company owes…

Q: A. It is probable that an outflow of economic benefits will be required to settle an obligation B.…

A: Option D

Q: Define a “liability” by listing its essential characteristics (not types of) as provided by our…

A: Liability :— It is a Financial obligation that is to be settled in the  future date.  Suppose an…

Q: Under - PFRS 15, when shall entity recognize revenue from contract with customers? Select the…

A: The revenue   should  be satisfied  only when the services or goods that have been  transferred at a…

Q: An obligation that is contingent on the occurrence of a future event should be reported in the…

A: Financial statements: The financial statements refer to the combination of a various statements like…

Q: Q1 (a) What attributes should an item or transaction exhibit in order to be classified as a…

A: Liability is an obligation which is to be paid at some future date. It is shown in the balance…

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: Give examples of obligations or contracts which are contrary to law .

A: The contract is an agreement forming a relationship between two parties in such a way that if any of…

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: 1. Which of the following is not an essential characteristic of a liability? * a. It is a present…

A: Liabilities may he defined as existing obligations which a business enterprise intends to meet in…

Q: Short-term obligations are reported as noncurrent

A: Short-term obligations are liabilities to be settled within one accounting year.

Q: A contingent liability should be recorded in the financial statements when the:   Select one: a.…

A: Contingent liability is the liability that arises on an event may or may not happen. It is recorded…

Q: Which of the following is not a condition in identifying the contract with the customer as per IFRS…

A: As IFRS 15 - Revenue from Contracts with Customers, The standard provides a single, principles based…

Q: Which of the following is not a ground for the extinguishment of an obligation? O Condonation or…

A: Following is the correct answer

Q: For a liability to be recognised within the financial statements, it needs to be reasonably apparent…

A: As per IFRS  a liability is that the future payment of which results…

Q: A constructive obligation may Be established by an implicit promise. Be established by an explicit…

A: A constructive obligation is considered as an obligation which arises out of the conduct and intent.…

Q: Which of the following is not a criterion that must be met for an item to be classified as a…

A: Introduction:- A liability is commitment or responsibility of a company that results in the…

Q: Give examples of obligations or contracts which are contrary to public policy.

A: It is often listened that there are some contracts or obligations which are contrary or…

Q: Define contingent liability. What is the criteria to determine whether or not to report the…

A: Liability means the obligation to pay to the other parties by transferring the economic benefits…

Q: In accordance with AASB 9, the recognition of a financial asset or financial liability will be…

A: Following is the answer to given question

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.