Similarities & Differences Between Contingent Assets And Contingent Liabilities
Contingent Assets VS Contingent Liabilities Contingent Assets are probable benefits that will arise on the happening of uncertain future events while Contingent Liabilities are the probable debts or due payable by the business to outsiders on the occurrence or non-occurrence of uncertain future events. Contingent Assets Example For example, if a company filed a case in court for claiming the rights of content, then the copyright will be a contingent asset for the company that will arise on the happe ning of future event i.e, either the company prove that it has legal owner of the content or it may fail to prove it. When the court makes a judgement that the company has legal owner of the content then such copyright (intangible asset) is recorded in company financial statements and it is now no longer be existed as a contingent asset. Contingent Liabilities Example If a company has a dispute with supplier company for goods purchased on account and the supplier company filed...