Liability
From Mises Wiki, the global repository of classical-liberal thought
A liability is a something for which one is obligated.[1] Most often, in financial accounting, a liability is debt or de facto debt.
According to U.S. GAAP:
"[A Liability is] probable future sacrifices of economic benefits, arising from present obligations of a particular entity, to transfer assets or provide services to other entities in the future."[2]
Under International Financial Reporting Standards or IFRS, a liability is:
"...a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits."[3]
