Contingent Liability
Jump to navigation
Jump to search
Description
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity; or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.
Concept Prerequisite
Wikipedia Reference
http://en.wikipedia.org/wiki/Contingent liability
Learning Material
Covered in Topic(s)
| Liabilities |