Business, Legal & Accounting Glossary
Obligations that are not recognised in the balance sheet because they depend upon some future event happening.
liabilities not recorded on a company’s financial reports, but which might become due. If a company is being sued, it has a contingent liability that will become a real liability if the company loses the suit.
Liabilities that may or may not be incurred by a company and which depend on the outcome of say a forthcoming event such as a court case. These are recorded in a company’s accounts as contingent liabilities.
contingent liability, contingencies, possible commitments, possible liability, potential liabilities
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This glossary post was last updated: 26th April, 2020 | 0 Views.