According to the new Conceptual Framework, which of the following is NOT an essential characteristic of a liability?
A) It exists in the present time.
B) There is certainty about the amount of future outflows.
C) The obligation is enforceable on the obligor entity.
D) It represents an economic burden or obligation.

Question

Quizplus · Accepted Answer

According to the new Conceptual Framework, while uncertainty about the amount of outflows does not preclude the existence of a liability, certainty about the amount of outflows is not an essential characteristic of a liability. Therefore, choice B is incorrect. The other three choices - A, C, and D - are all essential characteristics of a liability as per the new Conceptual Framework.

According to the New Conceptual Framework, Which of the Following