According to the IASB current proposed definition, which of the following is NOT an essential characteristic of a liability?
A)It exists in the present time.
B)There is certainty about the amount of future outflows.
C)The obligation is enforceable on the obligor entity.
D)It represents an economic burden or obligation.

Question

Quizplus · Accepted Answer

The IASB's proposed definition of a liability includes that it exists in the present time, represents an economic burden, and is enforceable on the obligor entity. However, there is not necessarily certainty about the amount of future outflows associated with a liability. In fact, the amount of the outflows may be uncertain and require estimation or judgement by the entity.

According to the IASB Current Proposed Definition, Which of the Following