Where will Contingent liability appears? And why it is not
appear in Balance sheet?
Answers were Sorted based on User's Feedback
Answer / ravi
Contingent Liabilities are doesn't shown in the balance
sheet, it should shown as note under balance sheet, this
liabilities are may be payable or may not be payable, ex:
BGs, LC, liability pending in the court those expenses
maybe payable are maynot be payable
Is This Answer Correct ? | 36 Yes | 3 No |
Contingent liability does not appear in the balance sheet.
It is written as a note under the balance sheet because
contingent liabilities are those liability which may or may
not be incurred depending on the future outcome. For Ex:
Loss by fire, theft etc...
Is This Answer Correct ? | 25 Yes | 6 No |
Answer / murali royal
It's a liability which may or may not happen in future depending on happening of uncertain events. It wont appear in Balance sheet. But we should mention under the b/s as foot note. Because, as per the convention of disclosure we have to disclose all the information in the financial statements.
Is This Answer Correct ? | 16 Yes | 3 No |
Answer / barodianbuddy(acca)
A contingent liability: a possible obligation depending on whether some uncertain future event occurs
According to IAS 37
Recognition of provision for contingent liability
Virtually certain ( > 95% ) - provide
Probable ( 50% to 95%) - provide
Possible ( 5% to 50% )- disclose by note
Remote ( < 5% )- no disclosure
Is This Answer Correct ? | 1 Yes | 0 No |
expand B C T T
how we can amortize the preliminary expenses calculation
How now about sales tax and purchase tax.what is the persentage of those thing in tamil nadu.
if average inventories is 12000. closing stock is 3000 more than opening stock. then what's is the closing stock?
whatis meant by contigent liability
Expand N D P
In Accounting how many types of formulaes?
explain about APP in SAP fico module?
Which Exchange determine Foreign ?
which is coming under indirect expenses
Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three
Financial Management vs Management accounting?