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11:03
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Originally posted by buddy134
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Wrong again mate......................I am a bean counter already and have been for many years mate. Most probably unlike someone else which might still be studying or just qualified if he/she is one.A contingent liability is a potential l iability that may occur, depending on the outcome of an uncertain future event. A contingent liability is recorded in the accounting records if the contingency is probable and reasonably estimated . ""##""the quality or state of being probable; the extent to which something is likely to happen or be the case."" ##""A contingent liability that is both probable and the amount can be estimated is recorded as 1) an expense or loss on the income statement, and 2) a liability on the balance sheet. As a result, a contingent liability is also referred to as a loss contingency.contingent debt is an unusual kind of debt that is dependent on uncertain future developments. A contigent debt is not a definitive liability as it is based on the outcome of a future event (for example, such as a court verdict).""##
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Seriously? Now I know for sure you're just trolling for arguments. You are not an accountant if you do not know that. It's accounting 101! I'm not even bothering to read your replies. any set of financial statements and you will never ever see a contingent liability recorded in the balance sheet. Why? Because if it was, it would be a liability and not a contingent liability.
