According to IFRS, all of the following are characteristics of a liability except:
A)obligations to provide goods or services to a third party.
B)obligations arising from past transactions.
C)events that will require sacrificing economic resources to settle.
D)obligations that will be settled with current assets.

Question

Quizplus · Accepted Answer

A liability is a present obligation of an entity arising from past events, the settlement of which is expected to result in an outflow of economic resources from the entity. The outflow of economic resources is typically settled with the transfer of cash or other current assets, therefore, liabilities are not settled with current assets. The other characteristics listed, such as obligations to provide goods or services and events that will require sacrificing economic resources, are all characteristics of a liability.

According to IFRS, All of the Following Are Characteristics of a Liability