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Dictionary by pitch.dog
Accounting policy, GAAP & adjustments · Core

Contingency

Also called: contingent matter

ELI5

A possible outcome dependent on uncertain future events.

Used in conversation

“Which accounting policy governs contingency?”

Pitch context

You will see “Contingency” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • ContingencyThe same visible label “Contingency” names different concepts.
  • Contingent liabilityThe search label “Contingency” can route to both entries.
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Sources & evidence · 4

Direct term-level sources and supporting source families.