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

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

Question Posted / muali

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

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

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36 Yes

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

Answer / kiran

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

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

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.

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3 No

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

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

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