Contingent asset

Contingent asset,

Definition of Contingent asset:

  1. An asset for which the growth potential is determined by future events entirely outside the companys control, and as such are not listed on its balance sheet, but are required to be stated in its financial statements.

  2. A contingent asset becomes a realized asset recordable on the balance sheet when the realization of cash flows associated with it becomes relatively certain. In this case, the asset is recognized in the period when the change in status occurs.

  3. A contingent asset is a potential economic benefit that is dependent on future events out of a company’s control. Not knowing for certain whether these gains will materialize, or being able to determine their precise economic value, means these assets cannot be recorded on the balance sheet. However, they can be reported in the accompanying notes of financial statements, provided that certain conditions are met. A contingent asset is also known as a potential asset.

How to use Contingent asset in a sentence?

  1. A contingent asset is a potential economic benefit that is dependent on future events out of a company’s control.
  2. Upon meeting certain conditions, contingent assets are reported in the accompanying notes of financial statements.
  3. They are recorded on the balance sheet only when the realization of cash flows associated with it becomes relatively certain.

Meaning of Contingent asset & Contingent asset Definition

Contingent Asset,

Definition of Contingent Asset:

The definition of Contingent Asset is: Fixed assets are potential economic benefits that depend on future events that are beyond the company's control. Unless you are convinced that this benefit will be met or that you can properly determine its economic value, this asset cannot be calculated. However, this can be stated in the annual financial statements notes, provided certain conditions are met. Expected assets are also called potential assets.

  • Fixed assets are potential economic benefits that depend on future events that are beyond the company's control.
  • When certain conditions are met, emergency assets are presented in a note to the financial statements.
  • They are recognized only if the relevant cash flow is relatively certain.

Literal Meanings of Contingent Asset

Contingent:

Meanings of Contingent:
  1. Random cases.

  2. It occurs or only exists when (some circumstances) depend on the case.

  3. A group of people is united by similar characteristics and part of a larger group.

Sentences of Contingent
  1. Work emergency

  2. The resolution of the dispute depends on the signing of a ceasefire agreement

  3. A group of Japanese businessmen attending the conference

Synonyms of Contingent

unlooked-for, accidental, fortuitous, unanticipated, unforeseeable, unforeseen, unexpected, conditional, group, set, body, band, chance, unpredicted, dependent, party, possible, unpredictable

Asset:

Meanings of Asset:
  1. Something useful or valuable, individual or quality.

Sentences of Asset
  1. Immediate reflexes are your main benefit

Synonyms of Asset

aid, beauty, gift, benefit, strong point, selling point, help, resource, virtue, forte, talent, blessing, advantage, recommendation, merit, strong suit, attraction, boon, good point, long suit, attractive feature