Section PS 3300 - Contingent Liabilities

Contingent liabilities

• Contingent liabilities are distinct from liabilities since there is a degree of uncertainty as to whether a present obligation to sacrifice economic benefits exists at the financial statement date.
• Contingent liabilities have two basic characteristics:
  • There must be an existing condition or situation; and
  • There must be an expected future event that will resolve the uncertainty as to whether a present obligation to sacrifice economic benefits exists. This event cannot be wholly within the control of the reporting government.

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