Contingent asset and liability

(in relation to financial statements/reporting) The full definition of both a contingent asset and a contingent liability are contained in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

Generally, contingencies are an obligation that arises from a past event but is not recognised (e.g. cannot yet be recorded as a liability). Common examples of contingent liabilities in the Commonwealth are indemnities, guarantees, warranties, legal proceedings and disputes, and uncalled capital.

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