Section PS 3300 - 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.