MANAGEMENT

Detailed explanation-1: -According to IAS 32, a financial liability is considered as an obligation to deliver cash or assets to another firm, or to exchange assets or liabilities with another firm. Bonds payable, debt investments, equity investments and so on.

Detailed explanation-2: -Financial liability: any liability that is: a contractual obligation: to deliver cash or another financial asset to another entity; or. to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the entity; or.

Detailed explanation-3: -An obligation is a liability to other arising from past transactions or events, the settlement of which is expected to result in the future sacrifice of economic benefits (i.e. cash payment or provision of service).

Detailed explanation-4: -Liabilities can be classified into three categories: current, non-current and contingent.