In a Constructive Obligation Where the Entity Retains Discretion to Avoid

question 6

True/False

In a constructive obligation where the entity retains discretion to avoid any future sacrifice of economic benefits,no liability should be recognised in the financial statements.

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Definitions:

Kahneman

Daniel Kahneman is a psychologist known for his work on the psychology of judgment and decision-making, as well as behavioral economics, for which he was awarded the Nobel Prize in Economic Sciences.

Inattentional Blindness

The phenomenon where an individual fails to perceive an unexpected stimulus that is in plain sight, due to focusing attention on another task, event, or object.

Counting Task

A cognitive task requiring individuals to count objects, stimuli, or events, often used to assess attention, speed, and working memory.

Gorilla Suit

A reference to a famous experiment highlighting inattentional blindness, where observers fail to notice a gorilla-suited figure amidst a visual task.