Contingency: Difference between revisions

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imported>Doug Williamson
(Add definition - source - IAS 37.)
imported>Doug Williamson
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* [[Financial reporting]]
* [[Financial reporting]]
* [[IAS 37]]
* [[IAS 37]]
* [[Reserves]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 19:36, 12 June 2023

1. Financial reporting - business planning.

Broadly, any uncertain future event.


2. Financial reporting - IAS 37.

For financial reporting purposes, IAS 37 defines a contingent liability by reference to the occurrence - or non-occurrence - of uncertain events not wholly within the control of the entity.

IAS 37 defines a contingent asset in a similar way.


3. Business planning.

An uncertain future event.

Usually - but not always - one that is expected to have a negative impact if it were to occur.


4. Financial management.

An amount of money set aside to deal with the potential negative impact of an uncertain future event.


See also