Which of the following characteristic is required for a "liability" under IFRS Framework?
A)Expected to result in the inflow of economic benefits.
B)Expected to result in the inflow of economic benefits that are measurable.
C)Expected to result in the outflow of resources embodying economic benefits.
D)Expected to result in the outflow of economic benefits that are virtually certain.

Question

Quizplus · Accepted Answer

A liability under the IFRS Framework is defined as a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Therefore, option C accurately describes a characteristic required for a liability.

Which of the Following Characteristic Is Required for a "Liability