Gain Contingency

Gain Contingency

A possible future event that will increase revenue or profits. A common example of a gain contingency is a lawsuit that might be successful. For the sake of fiscal conservatism, gain contingencies are not reported as assets or revenue until the suspected events actually occur.
References in periodicals archive ?
Further, the Partial Final Award is treated as a gain contingency for accounting purposes and accordingly will not be recognised in the company's third quarter 2017 consolidated financial statements, it said as well.
Recognition of an asset for a gain contingency prior to its meeting the criteria for recognition,
It was the first to gain contingency plans--initially only against a putative, and implausible, attack from Belarus, a country barely a quarter of its size.
In FAS 5, the term "contingency" is defined as "an existing condition, situation, or set of circumstances involving uncertainty as to possible gain (hereinafter a 'gain contingency') or loss (hereinafter a 'loss contingency') to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur." Not all uncertainties give rise to FAS 5 contingencies.