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Where will Contingent liability appears? And why it is not
appear in Balance sheet?
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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 |
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