Disclosure of contingent liability

This query is : Resolved

Deepika Mevadi (Querist)
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29 January 2018 While preparing financial statement of private limited company, whether LC and BG outstanding at year end should be shown in contingent liability. Suppose LC opened on 28th March, 2017 for 90 days, which is paid in time and before preparing financial statement. Should it be shown contingent liability ?

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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30 January 2018 LC and BG are required to be shown as contingent liability. If the LC is closed and the liability has been established or paid, there is no need to show them as contingent liability