The Relationship And Difference Between Estimated Liabilities And Contingent Liabilities

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It is estimated that liabilities and contingent liabilities are all contingent liabilities. They are a situation formed by pactions or events in the past.

Result

It must be confirmed by the occurrence or absence of uncertain events in the future.

From the perspective of nature, they are all obligations undertaken by an enterprise, which will lead to economic benefits flowing out of the enterprise.

However, it is estimated that liabilities and contingent liabilities are quite different. It is estimated that liabilities are the current obligations of enterprises. Contingent liabilities are the current obligations of enterprises or do not meet the conditions of confirmation. The possibility that liabilities lead to outflow of economic interests is "likely", "basically determined" and the amount can be reliably measured.

Amount of money

It is impossible to measure reliably; the estimated liabilities are recognised liabilities; contingent liabilities are not recognised in the balance sheet; contingency liabilities need to be disclosed in the notes to the accounting statements, or liabilities are determined according to the circumstances (the size of the possibility) and so on.

accounting

Disclosed in the notes to the report.