Liabilities Q3 Answer

Q3: What is the ‘time-based’ trifecta which aspects of a business need to ‘win’ to meet the definition of a liability?

A:

The ‘time-based’ trifecta to meet the definition of a liability is:

  • ‘past’ event
  • ‘present’ obligation
  • ‘future’ transfer of an economic resource
    AASB CF Framework para 4.26.