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Definition: Firm commitment

International accounting standards

A firm commitment is a binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates.
European Union, Commission Regulation (EC) No 2086/2004 of 19 November 2004 amending Regulation (EC) No 1725/2003 on the adoption of certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards the insertion of IAS 39