Contingent item

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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 related 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.

See also