Which statement is correct under the IFRS definition for a "liability"?
A)The obligating event must be probable before the liability can be recognized.
B)The obligating event must be virtually certain before the liability can be recognized.
C)A reliable measure of the obligation must exist before the liability can be recognized.
D)A precise measure of the obligation must exist before the liability can be recognized.

Question

Quizplus · Accepted Answer

Under IFRS, a liability is recognized when a reliable measure of the obligation exists, not necessarily a precise one.

Which Statement Is Correct Under the IFRS Definition for a "Liability