As 29 contingent liability
This query is : Resolved
Chandranil
(Querist)
11 May 2013
Dear All,
Suppose a X Company has lien marked its FD,s for loan facility to be availed by its sister concern Y Company, then in such case will such whether the amount of FD's marked will be shown as Contingent Liability in the X Company's Annual Accounts ?
Suppose a X Company has lien marked its FD,s for loan facility to be availed by its sister concern Y Company, then in such case will such whether the amount of FD's marked will be shown as Contingent Liability in the X Company's Annual Accounts ?
Ganeshbabu K
(Expert)
15 May 2013
As per AS29
it can be taken as contingent liability provided following conditions are satisfied.
1)a possible obligation
arises from past events,excistance of which will be confirmed by the occurance or non-occurance of one or more future uncertain events not wholly with in the control of entreprise,
as per this i'm in a opinion that it can be taken as CONTINGENT LIABILITY
As per AS29
it can be taken as contingent liability provided following conditions are satisfied.
1)a possible obligation
arises from past events,excistance of which will be confirmed by the occurance or non-occurance of one or more future uncertain events not wholly with in the control of entreprise,
as per this i'm in a opinion that it can be taken as CONTINGENT LIABILITY
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