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 ?
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
CAclubindia
