contingent asset
A potential *asset whose existence and quantification are doubtful. Many systems of *Generally Accepted Accounting Principles require the *disclosure of *material contingent assets in financial statements, but do not allow the *recognition of such assets until their *crystallization is very likely. Contingent assets normally depend on the occurrence or outcome of a specific event: an example is a court case whose outcome is uncertain, but which may give rise to financial benefits to an organization. Contrast *contingent liability.

Auditor's dictionary. 2014.

Look at other dictionaries:

  • contingent asset — A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, which are not wholly in the control of the accounting entity. Under Financial Reporting Standard 12 …   Accounting dictionary

  • contingent asset — A possible asset that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events, which are not wholly in the control of the accounting entity. Under Financial Reporting Standard 12 …   Big dictionary of business and management

  • Contingent Asset — An asset in which the possibility of an economic benefit depends solely upon future events that can t be controlled by the company. Due to the uncertainty of the future events, these assets are not placed on the balance sheet. However, they can… …   Investment dictionary

  • contingent liability — A potential liability whose existence and quantification are doubtful. Most systems of *Generally Accepted Accounting Principles require the *disclosure of *material contingent liabilities in financial statements. Contingent liabilities normally… …   Auditor's dictionary

  • contingent gain — A gain that depends upon the outcome of some contingency. For example, if a company is making a substantial legal claim against another organization, the company has a contingent gain (depending upon the successful outcome of the claim). Compare …   Accounting dictionary

  • contingent liability — 1) A possible obligation that arises from past events, whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within an entity s control. 2) A present obligation that arises from past events in… …   Accounting dictionary

  • contingent gain — A gain that depends upon the outcome of some contingency. For example, if a company is making a substantial legal claim against another organization, the company has a contingent gain (depending upon the successful outcome of the claim). Compare… …   Big dictionary of business and management

  • contingent liability — 1) A possible obligation that arises from past events, whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within an entity s control. 2) A present obligation that arises from past events in… …   Big dictionary of business and management

  • Asset protection insurance — Introduction A proper asset protection strategy prevents creditors from gaining access to assets. The basic areas of need encompassing asset protection are: litigation and creditor protection, sovereignty protection, succession and… …   Wikipedia

  • Contingent Payment Sale — A type of installment sale in which either the price or payment period for the asset has not been fixed. Contingent payment sales entail a special set of rules that vary according to whether the price or the schedule is the fixed amount. For… …   Investment dictionary

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