Liability which is difficult to quantify, or which may or 
may not come to pass, such as an outstanding lawsuit.

a contingent iability is a liability which may or may not 
arise in the future depending on the happening or non 
happening of an event.

Contingent liabilities are liabilities that may or may not 
be incurred by an entity depending on the outcome of a 
future event such as a court case. These liabilities are 
recorded in a company's accounts and shown in the balance 
sheet when both probable and reasonably estimable. A 
footnote to the balance sheet describes the nature and 
extent of the contingent liabilities. The likelihood of 
loss is described as probable, reasonably possible, or 
remote. The ability to estimate a loss is described as 
known, reasonably estimable, or not reasonably estimable.

A contingent liability is a liability which a company has 
to show in balance sheet and if that liability doesnt occur 
in thew future then the company need not pay. For example 
the Guarantees extended are Contingent Liabilitys. it 
should be shown in the Notes to Accounts under the B/S

These are the not real liability, future events can only 
decide weather it is a really a liability or not, due to 
their uncertainity.These liabilities are termed as 
contingent liabilities.Example:Bill Discounting.

A contingent iability is a liability which may or may not 
arise in the future depending on the happening or non 
happening of an event.This contingent liability we not 
consider in Balance sheet because may be some times it will 
be happening or may not be happening.We will make a one 
note for contingfent liabilities in audit file.

These are not the real liability, feature events can only 
decide wheather it is a really a liability or not, due to 
their uncertianity. these liabilities are turmed as 
contigent liabilities. Example. Bill Discounting.

contingent liability is the liability arrise after the 
decision of other body, ie court case, decision of Taxation 
department etc.

a) A possible obligation that arises from past events and 
the existence of which will be confirmed only by the 
occurrence or non-occurrence of one or more uncertain 
future events not wholly within the control of the 
enterprise; or
b)A present obligation that arises from past events but is 
not recognised because: 
  (i)it is not probable that an outflow of resources  
embodying economic benefits will be required to settle the 
obligation; or
(ii)	 a reliable estimate of the amount of the 
obligation cannot be made. 


Possible obligation - an obligation is a possible 
obligation if, based on the evidence available, its 
existence at the balance sheet date is considered not 
probable.

Present obligation - an obligation is a present obligation 
if, based on the evidence available, its existence at the 
balance sheet date is considered probable, i.e., more 
likely than not.