IFRS Defintions – Annual Reporting

1 A B C D E F G H I J K L M N O P Q R S T U V W

Liability

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.

An entity’s obligation to investigate and pay valid claims for insured events that have already occurred, including events that have occurred but for which claims have not been reported, and other incurred insurance expenses.

Lifetime expected credit losses

The expected credit losses that result from all possible default events over the expected life of a financial instrument.

Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.