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Johnny Debster is a famous musician. His son, River Debster wants to travel around Europe for 2 years or longer, but has no money saved. River has asked his father to act as an underwriter on a $100,000 loan so that the trip to Europe will be possible.As an underwriter, Johnny will be legally required to pay off any of the loan outstanding should River fail to make the payments.
Required:
Problem 1: From Johnny's point of view, should he recognise a liability in accordance with the relevant Conceptual Framework definition and recognition criteria.
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