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Contingent Asset and Liab
Accountancy
Please explain the below in simple words A contingent liability needs to be disclosed in financial statements unless possibility of outflow of a resource embodying economic benefits is remote. I thought it should not be disclosed in FS but mentioned in notes.
Answers (7)
Balachandar S
I hope have u clear
Yes understood that it does not satisfy the recognition criteria. Irrespective of amount whether huge or meager it will be shown in notes and never in BS. Am I correct ?
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Ratnasri NYes understood that it does not satisfy the recognition criteria. Irrespective of amount whether huge or meager it will be shown in notes and never in BS. Am I correct ?
Huge amount or meager I do not know..... But may be we will learn in next level .... As of now it will shown in foot notes to a/c's .... As so an so amount like that..........
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Ratnasri NYes understood that it does not satisfy the recognition criteria. Irrespective of amount whether huge or meager it will be shown in notes and never in BS. Am I correct ?
Contingent liability is never recognised in financial statements.
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