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.
An example of this contingent liability
would be the cost of shutting down a facility on a contractor's property at the end of contract performance.
Key highlights of the ACE Occupational Accident Policy with optional Contingent Liability
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.
BDHMI assumed a $560 million contingent liability
for health care claims; its resulting value was $1 million ($561 million less $560 million).
A determination that a contingent liability
is not the seller's responsibility (i.
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.
Since the last review, Fitch notes some positive credit developments, including higher GDP growth in 2006, the government's plan to reduce reliance on the international capital markets for financing the fiscal deficit in 2007, and greater foreign participation in the banking sector, which should reduce the sovereign's contingent liability
associated with banks.