Contingent liabilities that a company considers to be reasonably possible and for which a company is able to reasonably estimate the amount of a loss are recognized on the balance sheet and the income statement.

Question

Quizplus · Accepted Answer

Contingent liabilities that are considered reasonably possible but can be estimated are disclosed in the notes to the financial statements, not recognized on the balance sheet or income statement.

Contingent Liabilities That a Company Considers to Be Reasonably Possible