Why is a present commitment to purchase an asset in the future not recorded as a liability?

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Accounting Principles Part 2

ISBN: 978-1118306796

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Posted: Mar 30, 2017 12:18 PM

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Why is a present commitment to purchase an asset in the future not recorded as a liability?

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The transaction does not meet the definition of a liability A liab...View the full answer

Accounting Principles Part 2

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