what is contingent liabilty, how it shows in balance sheet?
Answers were Sorted based on User's Feedback
Contingent liability is a liability. The liability depands
upon the Future Judgement. Contingent liability amount
shows in Balance Sheet as Foot note.
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / suresh jankar
Contingent liablity is contingnet in nature and is largely
depend upoun the outcome of future event . It the outcome
of future event will going the confirm the liablity then it
would prudence practice to recognise the same in the books
and otherwise only notes is require to be given in notes to
accounts .
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / sat
Contingent liability is nothing but,
A liability which "may or may not arise" in future.
It shown in foot note of the balance sheet as they are not affecting the liability.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / hemant
contingent liablities means in future might be company face
like that expense so we understood like a reserve of risk
cover
so As a outstanding we show in liabilites
| Is This Answer Correct ? | 1 Yes | 0 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 ? | 0 Yes | 0 No |
What is BRS ?How do you prepare the BRS?
Why Reserves and Surplus are shown on the liabilities side of the balance sheet.? justify your answer.
4 Answers Infosys, Muthoot Group,
what is the relationship between cost accounting financial accounting and managerial accounting?
what is defference between flat rate and reducing rate, and which is more affortable for borrower?
what are contingent liabilities?
Describe the advantages and disadvantages of the different accounting packages/systems you have used recently in your accountant jobs
I have recieved a payment from hmrc on Friday morning and by the afternoon it was removed from my bank account by contra entry what does this mean? Will I recieve the money?
3 dost 1 hotel me khana khne gye to unhone 75 rupye diye aur hotel ki malik ne unhe 5 rupaye wapas diya aur 2rupye water ne rakh diye aur une 1,1 rupye diye aur 1 rupya kha gya
Why do you want to work as an accountant?
What is the meaning of scrap value in accounting?
Whether Depreciation to be posted in debit side or credit side?
What is the difference between deferred revenue and accrued revenue?