Financial Liability is a contractual obligation that requires a debtor to make a payment to a creditor in circumstances specified in a contract between the two parties certain rights or obligations. The Financial Liability is to deliver cash or similar to another entity or a potentially unfavourable exchange of financial assets or liabilities with another entity that may be settled in the entity’s own equity instruments, the nature of which requires them to be treated as financial.
Related Definitions in the Project: The Commercial Definitions; Project Contract
