Why are contingent liabilities ever recorded—why not just wait until a lawsuit is settled? What accounting concepts apply to this situation?

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nkamuni_mca  

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• Member Since Dec-2007 | Mar 10th, 2010

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Contingent Liability is the liability which may / may not occour in future... So, it is shown as notes rather then in balance sheet... Once, the liability become's real then it will recorded in books.

GIRISH GARG

• Sep 1st, 2014

Contingent liability is a liability that may or may not occur in future. It depends upon an event that will occur in future and can make a company liable to it. Example. when 2 cos A and B are in disp...

chandu

• Mar 28th, 2012

Contingent liability nothing but liability it will occur uncertain future events like product warranty.

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