Contingent Liabilities .

• Contingent Liabilities

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Digital currency exchanger

1 Some digital gold currency accounts, such as e-gold, do not provide an in-house service to

purchase their private currency so it is necessary to use a third-party digital currency exchanger. According to e-gold's website the

reason they do not provide an in-house exchange service is so there can be no debt or

contingent liabilities associated with the business, making e-gold Ltd. free of regulatory risk. They claim e-gold Ltd. does not possess currency of any nation or even have a bank

account.


Financial statements - Notes to financial statements

1 Notes to financial statements (notes) are additional information added to the end of

financial statements that help explain specific items in the statements as well as provide a

more comprehensive assessment of a company's financial condition. Notes to

financial statements can include information on debt, going concern criteria, Account

(accountancy)|accounts, contingent liabilities or contextual information explaining the

financial numbers (e.g. to indicate a lawsuit).


Balance sheet - US small business balance sheet

1 Contingent liabilities such as warranties are noted in the footnotes to the balance sheet


International Financial Reporting Standards - Russia

1 Full transition to IFRS is delayed but starting 2012 new modifications

making Russian GAAP converging to IFRS have been made. They notably include the booking of reserves for bad debts and contingent liabilities

and the devaluation of inventory and financial assets.


SOX 404 top-down risk assessment - Identify controls that address the material misstatement risks (MMR)

1 The SEC Guidance defines the probability terms as follows, per FAS5 Accounting for Contingent Liabilities:


Troubled Asset Relief Program - Protection of taxpayer investment

1 ##The Act also seems to give a broad mandate to the Treasury to

determine, for each type of institution that sells assets to TARP, whether the current disclosure and transparency requirements on the

sources of the institution's exposure (such as off-balance sheet

transactions, derivative instruments, and contingent liabilities) are

adequatehttps://store.theartofservice.com/the-contingent-liabilities-toolkit.html

Vickers Limited - Reorganization and financial reconstruction

1 Subsequently Vickers carried through a financial reconstruction scheme

which after making additional reserves for contingent liabilities

reduced their assets by £12.5 million and their total balance sheet from £34.7 to £22.2 million.City Notes.

Armstrong-Vickers Fusion. The Times, Friday, 4 November 1927; p. 21;

Issue 44730https://store.theartofservice.com/the-contingent-liabilities-toolkit.html

External debt - Definition

1 ;Current and Not Contingent: Contingent liabilities are not included in the definition of

external debt. These are defined as arrangements under which one or more

conditions must be fulfilled before a financial transaction takes place. However, from the viewpoint of understanding vulnerability, there is analytical interest in the potential

impact of contingent liabilities on an economy and on particular institutional

sectors, such as government.


2009 Supervisory Capital Assessment Program - Scope and purpose

1 Each participating financial institution was instructed to analyze potential firm‐wide losses, including in its loan and securities portfolios,

as well as from any off‐balance sheet commitments and contingent

liabilities/exposures, under two defined economic scenarios over a

two year time horizon (2009 – 2010)


2009 Supervisory Capital Assessment Program - Results and consequences

1 Specific factors supervisors consider include: uncertainty about the potential impact on earnings and capital from current and prospective economic

conditions; asset quality and concentrations of credit exposures; the potential for unanticipated losses and

declines in asset values; off‐balance sheet and Contingent Liabilities|contingent liabilities (e.g.,

implicit and explicit liquidity and credit commitments); the composition, level and quality of

capital; the ability of the institution to raise additional common stock and other forms of capital in

the market; and other risks that are not fully captured in regulatory capital calculations.


International Public Sector Accounting Standards - IPSAS Adoption by Country

1 * 'Romania' - Central government has adopted the accrual basis of accounting, including some of the IPSASs, notably IPSAS 1 Presentation of

Financial Statements, IPSAS 2 Cash Flow Statements, IPSAS 12 Inventories, IPSAS 17 Property, Plant and Equipment and IPSAS 19

Provisions, Contingent Liabilities and Contingent Assets. Plans include improvement of

compliance with these standards and the adoption of additional IPSASs, including IPSAS 6 Consolidated and separate financial statements.


Contingent liabilities

1 A footnote to the balance sheet may describe the nature and extent of the contingent

liabilities


IFRS - Recognition of elements of financial statements

1 Whilst the standard on provisions, IAS 37, prohibits the recognition of a

provision for contingent liabilities,[http://eifrs.ifrs.org/eifrs/bnstandards/

en/2013/ias37.pdf Paragraph 27 of the IFRS standard IAS 37] this

prohibition is not applicable to the accounting for contingent liabilities in

a business combination


IAS 37

1 [http://www.iasplus.com/en/standards/standard36 IAS 37 —

Provisions, Contingent Liabilities and Contingent Assets]


IAS 37

1 [http://www2.accaglobal.com/archive/sa_oldarticles/30899 IAS 37,

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT

ASSETS]


IAS 37 - Provisions

1 # the amount of the obligation can be estimated reliably.IASC

Foundation, 2009. [http://www.iasb.org/NR/rdonlyres/94

C8F2F5-FC68-43E5-86AC-211C9B701FE5/0/IAS37.pdf IAS 37

Provisions, Contingent Liabilities and Contingent Assets]. Retrieved on

April 25, 2012.


IAS 37 - Provisions

1 The standard also details measurement methods for provisions, generally requiring that the entity recognises a best estimate

of the amounts needed to settle the obligation.PWC, 2012.

[https://pwcinform.pwc.com/inform2/show?action=informContentid=09200844031837

44 Provisions, Contingent Liabilities, and Contingent Assets]. Retrieved on April 25,

2012.


IAS 37 - Contingent assets and liabilities

1 IAS 37 generally defines contingent assets and liabilities as assets and liabilities that

arose from past events but whose existence will only be confirmed by the occurrence of

future events that are not in the entity's control. It establishes that contingent assets and liabilities are not to be recognized in the

financial statements, but that contingent liabilities are to be disclosed as long as the chance that they would cause outflows of

resources is not insignificant.


Bruce Bartlett - Works

1 * The Federal Debt: On-Budget, Off-Budget, and Contingent Liabilities: A

Staff Study, U.S. G.P.O., 1983.


International Financial Reporting Standards requirements - Acquisition accounting and goodwill

1 The acquiring entity assesses the fair value of the separate assets, liability

(accounting)|liabilities and contingent liabilities in the business

it has acquired. This can include identification of intangible assets, for

example customer relationships, which are not commonly recognised

except on acquisitions (IFRS3.10)


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