what is contigent liability and state some examples also.
- 3 Answers
- 11339 Views
- I also Faced
- E-Mail Answers
Answer Posted / rajesh
A contingent liability is:
(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.
A contingent asset is a possible asset that arises
from past events 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.
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.
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.
A restructuring is a programme that is planned and controlled
by management, and materially changes either:
(a) the scope of a business undertaken by an enterprise;
or
(b) the manner in which that business is conducted.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
Raju put labour charges bill for Rs 65000/- You are directed to deduct 5% security deposit and 1.15% TDS from the bill. Pass journal entry for it
wages posted twice what is the entry for that?
what is Calculation of Gross Profit Or Gross Loss?
Expand ________FIPB
What is the basic difference between pledge, hypothication and mortgage????
What is Spin-off & spilts
What are the types of journal categories available in the Oracle AP?
Is advance paid wages has credit balance?
Define `Realisation` Account? Explain the salient features?
Please suggest the manual records needed to be maintained at NGO/CBO to record the transactions of accounts & inventory. Please also mention the need & purpose of each records/books
Short Answer on _______Appropriation
Explain why retained earnings have an opportunity cost associated?
Distinguish capital and Revenue receipts
What is payment/receipt/period accruals?
What is Merchandising Accounting process
