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.
Years and years of experience will count a lot let me tell you.
Are you.??
All of what you brought across above has already been addressed and calculated.
You brought this across:
##""A contingent liability is a potentialliability 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 probableand the amount of the liability can be reasonably estimated.""##
Now read it once again and take your time to read it properly this time.
Definition of probability: ............................""the quality or state of being probable; the extent to which something is likely to happen or be the case.""
Does that suffice.?
IMHO, someone is burying his/hers head in the sand here. Most probably because if a contingent liability is to be calculated and entered into the Financials, it wouldn't make things looking good.
And, interestingly enough, you also left the other two parts of my post out which are as follows:
##""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.
A 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).""##
Read it again and read the last paragraph in it's entirety and properly before replaying.
CTP Price at posting:
8.7¢ Sentiment: None Disclosure: Held
(20min delay)
