What is the meaning of contingent liabilities? ...

A contingent liability is a present obligation from past events that would pay another event in the future. ... .The responsibility is dependent on an event that may occur or not. ... .has guaranteed liabilities lotSuppose example of the practice on a father the loan on the car of his son (the last event). ... .As guarantor of the loan, he is responsible for future installments of the loan (the current requirement), if his son is not by default then the loan (from a possible future event), to pay for. If his son made all required payments (another .. potential future event). ... .Accordingly, the father of a quota liability.A Business ExampleBusiness liabilitySuppose rate for a car manufacturer by a car owner, who caused an accident with a car with defective brakes was sued is injured. ... .The manufacturer has a contingent liability: as a result of the combination (and / or brakes), they must pay an examination of the owner of the car (the current requirement), if the owner and gain suit.Litigation cost of pension liabilities retireeContingent.. .often disputes, including product liability suits, bathing environmental responsibility and litigation. ... .Potential health and future cost of pensions for retirees and the risk of injury by accident insurance companies, other types of conditional liabilities.Governing RulesThe Financial Accounting Standards Board (FASB). Statement of Financial Accounting Standards No. 5, published in 1975. .controlling when and how contingencies are in financial reports filed with the Securities and Exchange Commission.DisclosureFASB Class probable future events (probably) brought disclosed. is reasonably possible (unlikely, but maybe) or remote (unlikely). ... .FASB Statement 5 states that a contingent liability should be given in the financial statements of the company known when the event is likely in the future and the amount of payments to be made can be estimated reliably ....