Under the AASB's Conceptual Framework liabilities are defined as:
A)future economic benefits under the control of the entity.
B)future sacrifices of economic benefits that are contingent upon the occurrence of an unusual event.
C)future sacrifices of profits payable to owners in the form of dividends.
D)a present obligation of the entity arising from past events,the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Question

Quizplus · Accepted Answer

The AASB's Conceptual Framework defines liabilities as a present obligation resulting from past events, and settlement of which is expected to result in an outflow of resources embodying economic benefits. Therefore, option D is the correct choice as it accurately reflects the definition of liabilities as per the AASB's conceptual framework. Option A defines economic benefits, Option B defines contingent liabilities, and Option C defines dividends, which are not liabilities.

Under the AASB's Conceptual Framework Liabilities Are Defined As