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.

Kemper's subsidiary receives favourable ruling in arbitration and wins USD84.3m plus interest

Recognition of an asset for a gain contingency prior to its meeting the criteria for recognition,

Fraud risks and detection

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.

Regional security plan moves forward

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.