Page 25 - Finac1 Test 1 slides

THE CONCEPTUAL FRAMEWORK

Elements of the financial statements

Liabilities

• Definition:

• A present obligation arising from past events,

• the settlement of which is expected to result in the

outflow of economic benefits

• Recognition:

• When it is probable that an outflow of resources

embodying economic benefits will result from the

settlement of a present obligation and

• the amount can be measured reliably

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