CONTINGENT LIABILITY Definition

Bookmark and Share

CONTINGENT LIABILITY is: (a) A possible obligation from past events that will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise; or (b) A present obligation from past events but is not recognized because (i) it is not probable that an outflow of resources will be required to settle the obligation; or (ii) the obligation cannot be measured reliably. Some examples: in corporate reports are pending lawsuits, judgments under appeal, disputed claims, and the like, representing potential financial liability.

Learn new Accounting Terms

PENGÖ is a currency of Hungary.

MARKET PRICE (MARKET VALUE), for securities sold on an exchange, is the last reported price at which the securi­ties were sold. For securities sold over-the-counter (OTC), the current price of the securities in the market.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.