A regime of contingent liability
is therefore unique in the sense that it requires shareholders to compensate depositors for losses out of their personal wealth if the remaining assets of the bank are insufficient to cover liabilities.
Special mention should be made of the contingent liability
transaction initiative, which provides taxpayers with a variety of approaches to settlement, ranging from acceptance of the IRS offer, to use of the Appeals process to determine what, if any, liability exists, to use of arbitration to settle the dispute.
358(h), by contrast, would reduce the basis of the stock received by the transferor by the present value of the contingent liability
assumed, effectively eliminating the loss on the subsequent stock sale.
In the annual report, Company X recognizes a contingent liability
of $5 million and explains the matter in a related footnote disclosure.
Somewhat offsetting the county's contingent liability
for WCHCC is the county's willingness to raise recurring revenue.
BDHMI assumed a $560 million contingent liability
for health care claims; its resulting value was $1 million ($561 million less $560 million).
These rules generally use a "closed transaction" approach and force the seller to account for the contingent liability
or adjust basis to determine the gain it realizes as of the transaction's effective date.
is $100, then the $100 contingent liability
may, if both parties agree, be treated as any other liability assumed on the sale of the assets.
Failure to properly consider the tax impact era contingent liability
could have a negative effect on the purchase era business.
5, when determining if a contingent liability
should be shown on a client's balance sheet.
Credit concerns include a high fixed-cost burden and the contingent liability
for the Westchester County Health Care Corporation (WCHCC, or the medical center), whose financial position is quite weak.
A contingent liability
is one that depends on an uncertain event, such as the settlement of a lawsuit.