Page 207 - FR Integrated Workbook 2018-19

IAS 37 and IAS 10

Contingent liabilities and assets

3.1 Contingent liabilities

Contingent liabilities are:

 possible obligations whose existence will only be confirmed by future events not
controlled by the entity, or

 present obligations where an outflow of economic benefits is not probable, or

 present obligations where the outflow of economic benefits cannot be
measured.

Contingent liabilities are disclosed in the financial statements, unless
the probability of an economic outflow is remote (in which case they are
ignored).

3.2 Contingent assets

Contingent assets are:

 assets whose existence will only be confirmed by future events not controlled by
the entity.

Contingent assets are disclosed in the financial statements if the
probability of an economic outflow is probable.

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