What criteria must be fulfilled for recognizing a liability?

Recognizing a liability necessitates that a present obligation arises due to past events and that the outflow of resources to settle that obligation is probable. This aligns with the fundamental definition of a liability in financial reporting frameworks, such as IFRS.

The criteria ensure that liabilities are recorded on the balance sheet only when there is a clear responsibility, or obligation, on the entity, and that it is likely that settling this obligation will involve an outflow of resources that have economic value, such as cash or other assets. This approach helps ensure that financial statements accurately reflect the financial position and obligations of the entity, making them reliable for stakeholders.

The other options do not encapsulate the necessary criteria for liability recognition appropriately. For instance, the mention of future events or the absence of a probability of outflow does not align with the established accounting principles regarding the recognition of liabilities.