The contingent liability will be recorded in the accounting records of the firm if it is likely to occur and the amount is reasonably estimated. What Is Contingent Liability? A contingent liability is a specific type ofliabilitythat could happen based on the outcome of an uncertain future event...
Definition of Contingent Liability A contingent liability is a potential liability that may or may not become an actual liability. Whether the contingent liability becomes an actual liability depends on a future event occurring or not occurring. In accounting, some contingent liabilities and their ...
Apotentialliability dependent upon some future event occurring or not occurring. For example, a company is named as a defendant in a $1 million lawsuit. Does that mean the company automatically has a liability of $1 million? What if the lawsuit has no merit and can easily be defended? If...
What distinguishes a short-term liability from a long-term liability? What is the meaning of asset, liability, revenue, and expense? What is a contingent liability? Describe the three ranges of loss contingencies outlined in SFAS No. 5, including a brief summary of the accounting and disclosure...
In addition, no gain may be recorded from a contingent asset until it actually occurs. The conservatism principle supersedes the matching principle of accrual accounting, meaning the asset may not be reported until a period after associated costs were incurred.此外，或有资产在实际发生之前，不得记入...
Based on this same example, Company XYZ would need to disclose a potential contingent liability in its notes and then later record it in its accounts, should it lose the lawsuit and be ordered to pay damages. 在上述示例中,XYZ公司需要在其财务报表附注部分披露潜在或有负债,之后,如果败诉并被责令...
including a different assessment of the merits of any action, claim or right or any business reasons that are in the best interest of Parent without regard to the best interests of the Company, and Parent will have no liability to any Person, including the Company, as a result of any such...
Whether or not the Notes are a suitable investment for you will depend on your individual circumstances and you should reach an investment decision only after you and your investment, legal, tax, accounting and other advisors have carefully considered the suitability of an inve...
Accounting for the environmental impacts of Texaco's operations in Ecuador: Chevron's contingent environmental liability disclosures. Accounting Forum 37 (2), 110-123.Buccina, S.; Chene, D.; Gramlich, J. Accounting for the environmental impacts of Texaco's operations in Ecuador:...
In addition, no gain may be recorded from a contingent asset until it actually occurs. The conservatism principle supersedes the matching principle ofaccrual accounting, meaning the asset may not be reported until a period after associated costs were incurred. ...