SFAC No. 6, paragraph 35: Liabilities are 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 as a result of past transactions or events.

IASB The Conceptual Framework for Financial Reporting, Chapter 4, paragraph 4.4(b): 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.

The Boards working definition as of October 2008 from the Joint Project on Conceptual Framework, Phase B Elements and Recognition: A liability of an entity is a present economic obligation for which the entity is the obligor.

Required

Read each definition and compare and contrast the FASB and IASB versions and then compare to the Boards definition.

What is the best definition and why?