Accountancy
This query is : Resolved
20 November 2016
What is the exect difference between Contingent Liabilities and Commitments?
Can anybody explain it with proper example....Experts plz help
21 November 2016
plz answer anybody what is the difference between Contingent liability and commitments as per comp act 2013
20 November 2021
Commitments are the obligation to the external parties of the company which arises with respect to any legal contract made by the company with those external parties whereas the contingencies are the obligations of the company whose occurrence is dependent on the outcome of a specific future events.
20 November 2021
Commitment is the promise made by the company to the outside parties due to contract or legal obligations whereas contingencies are the obligations of the company the occurrence of which depends upon the happening or non-happening of uncertain future events hence contingency may or may not result in an outflow of funds.
20 November 2021
A commitment is a promise made by a company to external stakeholders and/or parties resulting from legal or contractual requirements. On the other hand, a contingency is an obligation of a company, which is dependent on the occurrence or non-occurrence of a future event.
A loss contingency refers to a charge or expense to an entity for a potential probable future event. A gain contingency refers to a potential gain or inflow of funds for an entity, resulting from an uncertain scenario that is likely to be resolved at a future time.
The disclosure and acknowledgment of commitments and contingencies allow for overall organizational transparency, resulting in an increase in faith by relevant stakeholders.
A loss contingency refers to a charge or expense to an entity for a potential probable future event. A gain contingency refers to a potential gain or inflow of funds for an entity, resulting from an uncertain scenario that is likely to be resolved at a future time.
The disclosure and acknowledgment of commitments and contingencies allow for overall organizational transparency, resulting in an increase in faith by relevant stakeholders.
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