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

Meet the denition of liability b probable outow of

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Unformatted text preview: g from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits Recognition criteria: a.  Meet the definition of liability b.  Probable outflow of resources c.  Settlement amount can be reliably measured Problems with the Current Definition IASB believes that the definitions can be improved in two ways: *  Confirming more explicitly that: *  an liability is an obligation (rather than the outflow of economic benefits that the obligation may generate) *  a liability must be capable of generating outflows of economic benefits. These outflows need not be certain. Their probability need not reach any minimum threshold before the underlying obligation meets the definition of an lia...
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