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(91)-CONTINGENT ASSETS

Friday, January 29, 2010

Contingent Assets

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.

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