Financial reporting standards define a contingent asset as:
A possible asset that arises from past events and whose existence will be confirmed by the occurrence of one or more uncertain future events not wholly within the entity’s control
A contingent asset must not be recognized. Only when the realization of the related economic benefits is virtually certain should recognition take place. At that point, the asset is no longer a contingent asset.
An entity should not recognize a contingent asset or liability but they should be disclosed by way of notice to the financial statements.