Contingent asset

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 Sir
please anyone can give me one example s of contingent asset and how it will be recorded in books of account please give me the j/entry also (accrual basis)
thank you

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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16 September 2011 contingent asset will shone in 'notes of accounts'. no need to pass entry for contingent asset.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2011
Contingent assets usually arise from unplanned or other unexpected
events that give rise to the possibility of an inflow of economic benefits to
the enterprise.
An example is a claim that an enterprise is pursuing through
legal processes, where the outcome is uncertain.
An enterprise should not recognise a contingent asset.

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CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 September 2011 As per AS 29 contingent assets are not disclosed in Fs however they are disclosed in report of reporting authority i.e. Directors report. Not in notes to account

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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17 September 2011 Agreed.... to Mr. Sumat that contingent assets can be show/disclose in Directors report.
not in notes of accounts....

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