Discuss whether the following items would meet the definition of a liability using the criteria currently in place under IFRS. If so, explain with reference to the appropriate criteria.
(a) Environmental remediation when a chemical spill has occurred. This spill has violated an existing law and statute.
Does a liability for cleanup exist?
(b) Environmental remediation after a chemical spill has occurred. No existing law or statute has been broken. Does a liability for cleanup exist?
(c) As part of its contract with the government, a logging company must replant one tree for each tree it cuts. Does a liability for replanting exist?
(d) A logging company has a corporate policy of always replanting trees and advertises this fact in its corporate and marketing brochures. Does a liability for replanting exist?