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Acc0207. Contingent Assets and Contingent Liabilities

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CPT Success
CPT Success

Revision Notes for CPT Unit: Contingent Assets and Contingent Liabilities Chapter: Accounting Proccess Subject: Fundamentals of Accounting

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CPTSuccess Revision Notes – Fundamentals of Accounting Chapter 2. Accounting Process Unit 7: Contingent Assets and Contingent Liabilities
Chapter 2. Accounting Process Unit 7: Contingent Assets and Contingent Liabilities ,[object Object]
As per the concept of prudence and present AS, an enterprise should not recognize a Contingent Asset.
A contingent liability is a possible obligation arising from past events and may arise in future depending on occurrence or non-occurrence of one or more uncertain future events. © Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com

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Acc0207. Contingent Assets and Contingent Liabilities

  • 1. CPTSuccess Revision Notes – Fundamentals of Accounting Chapter 2. Accounting Process Unit 7: Contingent Assets and Contingent Liabilities
  • 2.
  • 3. As per the concept of prudence and present AS, an enterprise should not recognize a Contingent Asset.
  • 4. A contingent liability is a possible obligation arising from past events and may arise in future depending on occurrence or non-occurrence of one or more uncertain future events. © Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com
  • 5.
  • 6. Contingent liabilities are shown as foot-note in the balance sheet
  • 7. Present liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation, is termed as “Provision”. In these cases, the liability is certain but the amount has to be estimated© Revision Notes - Fundamentals of Accounting CPTSuccess www.cptsuccess.com