What Is a Contingent Asset?

Contingent assets are symmetrical as "contingent liabilities". Property or money expected from future transactions or events. The existence, value, and ownership of such assets will depend entirely on whether the relevant event occurs in the future. Such as: conditional gift of property, property rights before the specified conditions have not been fully met; claims have been confirmed, but the amount of insurance compensation has not yet been determined. Contingent assets are sometimes related to contingent liabilities, such as contingent liabilities that occur as a result of discounting bills receivable, and contingent assets that have the right to recourse to debt. Contingent assets are usually appended on the balance sheet, indicating their name, nature, and expected value. ^[1]

Contingent assets

Right!

Contingent assets are symmetrical as "contingent liabilities". By past transactions or

As a potential asset, the contingent asset has a large uncertainty. Only with the change of economic conditions, can it be confirmed whether certain future uncertain events will occur or not. For example, company A sued the court against company B for infringing its

Features of contingent assets:

1.Contingent assets are from the past

Disclosure of contingent assets:

(1) Conditions

Only probable contingent assets are sufficient for conditional disclosure

(2) Disclosed content

1. If the enterprise pays off the cause

Company B received a notice from the court on November 1, 2005, and company A filed a lawsuit with the court, suing a software used by company B that violated it.

(1)

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Contingent asset recognition needs to depend on

1. Contingent assets: The existence of potential assets resulting from past transactions or events must be confirmed by the occurrence or non-occurrence of future uncertain events. This uncertainty refers not only to whether the receipt can be basically determined, but also to whether the result can be reliably measured. Only when these two conditions are met at the same time can it be called basic determination.

2. Contingent assets cannot be recognized as assets, but they can be recognized as assets after the conditions are met. Therefore, some judgment topics say that contingent assets can be recognized as assets. It is wrong to meet the prerequisites before they can be converted into assets. You must pay attention to this.

3.Contingent

1. Contingent assets cannot be recognized as assets. They can be converted into assets only after certain conditions are met.

2, need to report

Judgment: 1. Contingent assets can be recognized as the assets of the enterprise. (X)

Analysis: Contingent assets can be converted into assets after meeting certain conditions.

2. Contingent assets need to be reported in the statement. (X)

Analysis: Contingent assets with relatively large amounts are likely to be reported in statements.