LearningCat: Contingent Liabilities and Commitments

Pending Litigations in Contingent Liabilities
What Is a Contingent Liability? A contingent liability arises when unforeseen circumstances occur. These liabilities are documented if the contingency is expected and the figure of the liability can be fairly assessed. The liability may be revealed in a footnote in the financial statements unless both conditions are not fulfilled. In business, these contingent liabilities […]
Leasing Commitments as Contingent Liabilities
Business cannot elude leasing. Leasing makes it easier for companies to access various resources for various purposes, i.e., office space, machines, or vehicles, without the requirement of freezing substantial amounts of capital. But leasing commitments can lead to contingent liabilities too. In cases of carelessness, this can bring a tornado of troubles for financial stability. […]