What is a contingent liability and where do they usually arise from?
A contingent liability is when the company could have a potential loss pending the outcome of a future event. There are plenty rules around how the contingent liability should be recorded or disclosed, but its more important to understand what areas typically generate contingent liabilities.
Contingent liabilities that may arise may be from any of the following:
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What is a loss contingency, and do they need to be recorded on the balance sheet and/or in the notes to the financial statements?
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