CONTINGENT ASSETS:
A contingent assets may be defined as a possible asset that arise from past events and whose existence will be confirmed only after occurrence and non- occurrence of one or more uncertain future events not wholly within the control of enterprise.
A contingent asset need not be disclosed in the financial statements.A contingent asset is usually disclosed in the report of approving authority(Board of Directors in the case of a company,and the corresponding approving authority in case of any other enterprise), if an inflow of economic benefit is probable.
CONTINGENT LIABILITIES:
The term ''Contingent liability'' can be defined as:
(a) a possible obligation that arise from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the enterprise; or
(b) a present obligation that arise from past events but is not recognised because:
1. it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or
2. a reliable estimate of the amount of the obligation cannot be made.
A contingent assets may be defined as a possible asset that arise from past events and whose existence will be confirmed only after occurrence and non- occurrence of one or more uncertain future events not wholly within the control of enterprise.
A contingent asset need not be disclosed in the financial statements.A contingent asset is usually disclosed in the report of approving authority(Board of Directors in the case of a company,and the corresponding approving authority in case of any other enterprise), if an inflow of economic benefit is probable.
CONTINGENT LIABILITIES:
The term ''Contingent liability'' can be defined as:
(a) a possible obligation that arise from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the enterprise; or
(b) a present obligation that arise from past events but is not recognised because:
1. it is not possible that an outflow of resources embodying economic benefits will be required to settle the obligation; or
2. a reliable estimate of the amount of the obligation cannot be made.
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