TRUE OR FALSE 1. A liability can result from past, present or future events

Pursuant to the conceptual framework, for an item to be characterised as a liability the definition of liabilities must be applicable to the transaction or event, and the recognition criteria should also be satisfied. Applying the definition of liabilities, there are three key components in the definition of ‘liability’, these being:1. There must be an expected future disposition of economic benefits to other entities.2. There must be a present obligation.3. A past transaction or other event must have created the obligation.Required:Take any two examples of liabilities and test if they meet all three requirements.

please ansert the following questions thanks

Contingent liabilities are obligations that may or may not materialize.

Explain how does a liability’s fair value change?

Under what circumstances is a contingent liability reflected in the accounting records as though an actual liability exists?

If a contingent liability is probable but estimable only within a range, what amount, if any, should the firm report?

Under IFRS, a liability is recorded if the chance of occurrence is Select one: A. probable. B. likely. C. undeterminable. D. unlikely.

Distinguish between a current liability and a long-termdebt.

а. Define what is an off-balance sheet activity? Also provide an example of an off-balance sheet liability.