Contingent liabilities are existing conditions, situations, or sets of circumstances involving uncertainty as to possible loss. Required:

Question:

are existing conditions, situations, or sets of circumstances involving uncertainty as to possible loss.

Required:
Under what circumstances (if any) are recognized on the balance sheet?

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...