According to the conceptual framework, the definition of liabilities must apply to the transaction or event. The regconition criteria should also be satisfied when an item is regconized as a liability.

Ther are three critical components in the definition of "liabiity", these being:

- There must be an expected future disposition of economic benefits to other entities.

- There must be a present obligation

- A part transaction or other events must have created the obligation.

Discuss any two examles of liabilities and test if they meet all three requirements.