Which of the following characteristic is required for a liability under IFRS Framework?
A)Arises from a past obligation.
B)Is a present obligation.
C)Is an unknown obligation.
D)Is a future obligation.

Question

Quizplus · Accepted Answer

According to the IFRS Framework, a liability is a present obligation arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits. Therefore, option A is partially correct, as the obligation must arise from a past event and not a future or unknown obligation. Option C is incorrect, as an unknown obligation cannot be recognized as a liability, and option D is incorrect, as liabilities must be present obligations, not future obligations.

Which of the Following Characteristic Is Required for a Liability