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Contingent Asset

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Contingent Asset
An asset that a company may have or receive but only if a certain future event occurs. Usually, a contingent asset refers to the outcome of a lawsuit: that is, the company may be awarded a significant amount of money if it wins the lawsuit. Contingent assets are not ordinarily recorded on a balance sheet because of the uncertainty surrounding them. Their existence may or may not affect the company's share price. See also: Contingent Liability.


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Analysts believe BA could insure all or part of its liabilities through a buy-out deal with a specialised insurer or hedge specific risks such as the longevity of pensioners through a swap deal or pledge contingent assets such as its real estate.
That's where you get solutions such as escrow accounts, or the use of contingent assets.
accountants were more conservative than Greek accountants in their recognition of a lawsuit in the financial statements as either a contingent asset or a contingent liability.
 
 
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