According to the existing IFRS and the CICA Handbook Part II guidelines, which of the following is NOT an essential characteristic of a liability?
A)It embodies a duty or responsibility.
B)The transaction or event that obliges the entity has occurred.
C)The obligation is enforceable on the other party.
D)The entity has little or no discretion to avoid the duty.

Question

Quizplus · Accepted Answer

According to both IFRS and the CICA Handbook Part II guidelines, the essential characteristics of a liability include embodying a duty or responsibility, the transaction or event obliging the entity having occurred, and the entity having little or no discretion to avoid the duty. However, the obligation being enforceable on the other party is not an essential characteristic of a liability.

According to the Existing IFRS and the CICA Handbook Part