contingent liability vs contingent assets

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wat is contingent liabilty and contingent asset..wats the difference in between dis two..i m confused..???
Replies (3)
Dear Rajiev, the regular definition of asset and liability are not changed in these cases... the only question is the word "contingent" .. now it means that the the existence of liability(or asset) will be confirmed only on the occurrence or non-occurrence of one or more future uncertain events.. now we have to disclose in notes to accounts, the contingent liabilities.. but we have to do nothing in regards to contingent assets as principles of prudence teach us not to recognize any gain unless realized.. I hope that your doubt is clear by now.. for more discussion, have a peek into AS29..

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Asset put to use but remain idle should we charge depreciation on that if yes under which statute ? Is Company law permit depreciation on such asset ?


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