Contingent item
From ACT Wiki
1. Financial reporting.
In financial reporting a contingent item is a condition which exists at a reporting date where the outcome will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events.
2. Bank supervision - capital adequacy - Risk Weighted Assets - off balance sheet risk.
In bank supervision, and Risk Weighted Assets calculations, a contingent item is a potential credit exposure of the supervised bank that may become an actual credit exposure.
Examples include performance guarantees, also known as performance bonds.
