Interested to Buy Any Domain ? << Click Here >> for more details...
What is contingent liability?
- 16 Answers
- 47660 Views
- Al Fara, Combined Fabrics, Scope International, Syntel, I also Faced
- E-Mail Answers
Answer Posted / suresh
Contingent Liabilities are shown in Notes to Accounts or
under Explanatory items depending on where the BS is
prepared. In some western countries CL is shown under
Auditors report and as an explanation to a possible
liability payable in the next year or future years.
Mostly these are related to court law suits or patent
issues/drugs abuse cases etc.
Most of the CL are not given any value in the BS but a note
saying that a payment of $$$$ may fall due on a possible
liability of a law suite etc etc...
The liability that cannot be quantified correctly to the
final value....say a legal liability or a product warantee
but a possible payment that may arrise in future if not
covered fully under any insurance.
It's the responsibility of the Auditor and the
Finance/Accounts Dept to workout at the aprox value to be
shown in the notes to a/c as CL based on a rough estimate.
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
What is the Accounts Payable & Accounts Receivable ?
What is the basic difference between pledge, hypothication and mortgage????
what are the new rules of central excise ?
who invented acounts?
what is balancesheet adjustment a/c. what is the use of this a/c in sap fico
If its is declared by auditor that business is not going concern that what journal entry will be pass?
can any one send me payables real time scenarious or any projects
What is meant for GR form, which is used in export of goods without of payment of duty ? For what purpose we use it ? Should merchandise exporter use it ?
What are Corporate Action?
hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
Expand-------MUR
what is monetary polasy and how it is different from trade polacy? how it will impact on stockmarkets in India?
what is buy bach shares?
why do we charge the depreciation
Dear sir,i have completed M.sc,MBA.STILL I AM NOT GETTING WELL POSITION .I THINK ON LOW BUGET ON COURSE TO IMPROVE MY POSITION IN FINANCE FIELD.
