Contingent Asset
/kənˈtɪndʒənt ˈæsɛt/
Definitions
- (n.) A possible asset arising from past events whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events not wholly within the entity's control.
The company disclosed the contingent asset in its financial statement footnotes, pending a favorable lawsuit outcome.
Forms
- contingent asset
Related terms
See also
Commentary
Often arises in accounting and legal contexts related to uncertain future economic benefits; precise recognition depends on the likelihood of realization and legal certainty.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.