Question 1. What is meant by the AARF statement at the bottom of this page?
Question 2. Discuss liabilities and the problem whith thier measurement in the conttext of the conceptual framework.
Question 3. Explain the categorization and measurement of labilites in the attached annual report.
“The definition of liabilities is comprehensive in its coverage: indeed, some would argue that it is too comprehensive in that it does not attempt to distinguish between liabilities and commitments. It includes obligations arising from firm contracts where neither the entity nor the counterparty has honoured its promises.”
References:
Australian Accounting Research Foundation (AARF), (1998),” Measurement in Financial Accounting”, Accounting Theory Monograph, AARF, Melbourne, p. 36.