According to the Existing IFRS and the CICA Handbook Part

question 66

Multiple Choice

According to the existing IFRS and the CICA Handbook Part II guidelines, which of the following is NOT an essential characteristic of a liability?

• A)It embodies a duty or responsibility.
• B)The transaction or event that obliges the entity has occurred.
• C)The obligation is enforceable on the other party.
• D)The entity has little or no discretion to avoid the duty.

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Definitions:

Restatement of Law

A set of treatises published by the American Law Institute meant to distill and clarify the common law of the United States.

Prohibitory

Pertaining to laws, rules, or regulations that forbid certain actions or behaviors.

Pervasive

Spreading widely throughout an area or group of people, especially of an unwelcome influence or physical effect.

Remedies

The means by which a right is enforced or the violation of a right is prevented, redressed, or compensated.