Homework SourseThe disclosure of a contingent liability in the footnotes an
The disclosure of a contingent liability in the footnotes and on the balance sheet indicates that the potential for the application occurring is
The disclosure of a contingent liability in the footnotes and on the balance sheet indicates that the potential for the application occurring is
Solution
Answer
Contnigent Liability is the potential future obligation but we are not sure that it will occur or not, so according to IRS we have to report the Contingent liability in the footnotes on the Balance Sheet.
So the Potential for the application occuring is Possible in the Future.
