Contingent Liabilities
/kənˈtɪndʒənt laɪˈbɪlɪtiz/
Definitions
- (n.) Potential obligations that may become actual liabilities depending on the outcome of future events.
The company disclosed its contingent liabilities in the financial statements to inform investors of possible risks.
Forms
- contingent liability
Related terms
See also
Commentary
Contingent liabilities must be carefully classified and disclosed in financial reporting to reflect their uncertain nature and potential impact on liabilities.
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.