An Entity Has Decided to Commit Itself to the Purchase

Multiple Choice

An entity has decided to commit itself to the purchase of a new building in the next financial year.Under the Framework:

A) a liability exists because it is probable that a future sacrifice of economic benefits will be required
B) no liability exists because there is no present obligation
C) a liability exists because there is a constructive obligation
D) a liability exists because there is an equitable obligation