Interpretation of the IASB (AASB)Framework suggests that a liability should cease to be recognised when assets or services have been transferred to other entities in satisfaction of the debt.

Question

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According to the IASB (AASB) Framework, a liability should cease to be recognised when assets or services have been transferred to other entities in satisfaction of the debt. This is based on the principle of derecognition, which states that a liability should be removed from the balance sheet when it is no longer expected to be settled.

Interpretation of the IASB (AASB)Framework Suggests That a Liability Should