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The following is a quotation from IFRS Framework: A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. â F.49(b)
exposure How much liability an insurer takes on when they write an insurance policy. insurance (insur) An arrangement where one party provides financial protection to another party for specific damages or losses. liability A situation where one party is found to be legally responsible for something.