AC2101 S1 2014 Seminar 11 Financial Liability (Anil).pptx

A present obligation exists at the reporting date and

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Unformatted text preview: bility. *  Adding to the guidance to support the definition of a liability A a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits 4 2 Proposed New Liability Definition A liability of an entity is a present obligation of an entity to transfer an economic resource as a result of past events. Ø། A present obligation exists at the reporting date and must have arisen as a result of past events. Ø། An obligation to transfer an economic resource may result in an entity paying cash, transferring assets other than case, granting...
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