Asked by Phyllisa Starks on Apr 24, 2024
A contingent liability is disclosed in a note to the financial statements when the liability is reasonably possible and can be estimated.
Contingent Liability
A potential obligation that may arise from a past event, the outcome of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events.
Financial Statements
Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.
- Acquire knowledge on the concept and handling of contingent liabilities in the context of financial disclosure.
Learning Objectives
- Acquire knowledge on the concept and handling of contingent liabilities in the context of financial disclosure.