Exactly. Please go to accounting school and learn what the...

Exactly. Please go to accounting school and learn what the difference is.

A contingent liability is a potential liability 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 the amount of the liability can be reasonably estimated.

I have re-bolded the applicable words from an accountants view that are key to recognising a liability (i.e. my view).

This can be split into two parts and you need both of them to record the liability:

1) Is it probable? No. Qld Courts have determined it Texas Courts don't have jurisdiction over an Australian company, management have determined this and PwC previously signed this off in Jun-17 financial statements.

2) Can it be reasonably estimated? Yes, GRR are seeking $20m but because you need all criteria to be met, it doesn't fit the definition of a liability (i.e. it isn't probable).

Does this mean it will never be a liability? No, not necessarily. More information may come to light or circumstances may change but currently, it does not meet the definition of a liability.