What is contingent liability?
- 16 Answers
- 44511 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
while doing work in dolphin software when credit note is given by supplier to purchaser then purchaser is debited supplier account so on credit side which account is coming which account should be credited
What is communicating
Since the interest rates on fixed deposits are very low as compared to the other growth oriented investment options, what are the permitted investment options that a public trust like that of a private school or small credit societies have and which are permitted by charity commissioner, Mumbai
What is back value adjustment/correction in Nostro Reconciliations?
What is difference between cash flow and funds flow?
why are you selecting for the profitbulity analysis costing based& active based
what is the scenario of multi-org setup?
1. what is debenture? 2.Why company will issue shares? 3. What is audit? 4. What is the role of finance department? 5. What is mutual fund?
2Create a program that accepts a number and output its equivalent in words (maximum input number is 3000). for example Enter a number: 1380 one thousand three hundred eighty
What is PE ratio formula ?
Short Answer on _________________City Compensatory allowance
what are the purpose for the preparation of cost centre ?
ACCOUNTING CONCEPTS AND CONVENTIONS
What is the Accounts Payable & Accounts Receivable ?
What is the difference between Balance Sheet , Chart Of Accounts and trial Balance?
