The definition of contingent assets is narrower than the definition of contingent liabilities.

Question

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Contingent assets are defined as a possible asset that arises as a result of past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent liabilities, on the other hand, are defined as a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Therefore, the definition of contingent assets is narrower as it only includes possible assets while contingent liabilities include possible obligations.

The Definition of Contingent Assets Is Narrower Than the Definition