Obligation
1. By virtue of an obligation, one party (the debtor) is required to perform a specific act in favor of another party (the creditor), such as transferring property, performing work, paying money, etc., or refraining from a specific action, while the creditor has the right to demand performance of the debtor's obligations
Source: "The Civil Code of the Russian Federation (Part One)" dated 30.11.1994 No. 51-FZ (as amended on 03.12.2012)
7.3. An obligation is considered to be a liability existing as of the reporting date, which arises from completed projects of the organization's economic activities and settlements that should result in an outflow of assets. An obligation may arise due to the action of a contract or legal norm, as well as business customs.
Settlement of an obligation usually implies that in order to satisfy the claims of the other party, the organization loses corresponding assets. This can occur through the payment of cash or the transfer of other assets (provision of services). In addition, settlement of an obligation may take place in the form of replacing one type of obligation with another; conversion of the obligation into capital; removal of claims by the creditor
Source: "Concept of Accounting in the Market Economy of Russia" (approved by the Methodological Council on Accounting under the Ministry of Finance of the Russian Federation, Presidential Council of the Russian Institute of Certified Public Accountants 29.12.1997)