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Dictionary by pitch.dog
Assets, liabilities & equity · Working

Contingent liability

Also called: contingency

ELI5

A possible obligation, or a present obligation not recognised because specified criteria are not met.

Used in conversation

“Do not describe contingent liability as agreed until the operative document says so.”

Pitch context

You will see “Contingent liability” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • ContingencyThe search label “Contingency” can route to both entries.
  • ContingencyThe search label “Contingency” can route to both entries.
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Sources & evidence · 4

Direct term-level sources and supporting source families.