According to the new Conceptual Framework and under ASPE in the CPA Canada Handbook Part II, 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

The new Conceptual Framework and under ASPE in the CPA Canada Handbook Part II does not require that the obligation be enforceable on the other party to be considered an essential characteristic of a liability. Rather, it should be probable that an outflow of resources embodying economic benefits will be required to settle the obligation.

According to the New Conceptual Framework and Under ASPE in the CPA