Potential liabilities, which only crystallize upon the fulfillment of or the failure to fulfill certain conditions. They may arise from the sale, transfer, endorsement, or guarantee of negotiable instruments or from other financial transactions. For example, they may result from: re-discount of notes receivable, trade and bank acceptances arising under commercial letters of credit; guarantees given; or letters of support or comfort.
Obligations that have been entered into, but the timing and amount of which are contingent on the occurrence of some uncertain future event. They are therefore not yet liabilities, and may never be if the specific contingency does not materialize.
A liability in a company's balance sheet that may or may not come home to roost in the future. It is contingent upon future events.
liabilities not recorded on a company's financial reports, but which might become due. If a company is being sued, it has a contingent liability that will become a real liability if the company loses the suit.
Items which may become liabilities as a result of pending conditions, such as guarantees, pending law suits, judgments under appeal, unsettled disputed claims, unfilled purchase orders and uncompleted contracts. All contingent liabilities should be disclosed within the basic financial statements, including the notes thereto.
Potential liabilities that the company MAY face in the future if certain circumstances should arise. Indicated in the Notes to the Accounts it will include, for example, the likely costs arising from guarantees given to third parties.
An unplanned and unforeseen potential financial judgment. In practice, many individuals and corporations face contingent liabilities. Therefore, contracts for sale and transfer of ownership should address all latent contingent liabilities.
Contingent liabilities are possible future liabilities which will become certain on the occurrence or non-occurrence of a future event.... more on Contingent liabilities
Contingent liabilities are liabilities that may or may not be incurred by a company and which depend on the outcome of say a forthcoming event such as a court case. These are recorded in a company's accounts as contingent liabilities.
