A contingent liability is a potential cost a company may or may not incur in the future. A contingent liability could be a guarantee on a debt to another entity, a lawsuit, a government probe, or even ...

It often is difficult to determine the existence of a contingent liability. Even when the potential liability is known, it’s not easy to correctly value it. Failure to properly consider the tax impact ...

Accruing a likely contingent liability is part of responsible earnings management. Although you aren't likely to find the term "earnings management" in an accounting dictionary, the American Institute ...

lthough in the past the government won a number of important victories in its ongoing attempt to stop abusive tax transactions, it has continued to lose on contingent liability transactions. Recently, ...

In this paper, we develop a methodology to assess potential losses to the government that could arise from bank failures. The approach is intended to be simple, parsimonious, and used in real time. It ...

Representations and warranties insurance (“R&W Insurance”) has been increasingly used in corporate transactions to facilitate successful negotiations. R&W Insurance is an insurance policy purchased by ...

Contingent liabilities from guarantees and contingent assets from on-lending, can pose substantial risks to government finances. Prudent risk monitoring and risk management can help identify and ...

Liabilities are what’s owed by an individual or a company. They are—in accounting terms—a company’s present obligations, originating from past transactions, through which economic benefits are ...

A contingent liability is a potential expense that is not certain to occur in the future, and a company must satisfy a particular set of conditions before realizing the liability. Generally accepted ...