Explain whether each of the following would be considered a liability according to IFRS (using the criteria from the chapter) on December 31, 2014. Intuitively, would you consider each of these items a liability, regardless of how it’s accounted for according to IFRS? Explain.

a. A company pays a licensing fee to use a sports team’s logo on its clothing line. The fee is 5 percent of sales of items with the logo. During 2014 \($2.4\) million of the items were sold. The fee must be paid on April 30, 2015.

b. A company will pay for goods it received by providing services to the customer instead of cash.

c. The cost of closing a landfill when it’s full. Significant costs will have to be incurred to ensure that it meets government standards. The landfill is expected to close in 15 years.