what is contingent asset

Answer Posted / kalyani

Item that depends on some future happening that may or may
not occur. Its existence or value is not assured. A
contingent asset may emanate from a Contingent Liability .
An example of a contingent asset may be a successful
lawsuit claiming damages of another party. It cannot be
shown as an asset on the balance sheet because it violates
conservatism. However, footnote disclosure may be made.

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