Remote Contingent Liability
Definition: A contingent liability whose chance of occurring is slight. Under ASC 450 (formerly SFAS 5), a remote contingency is neither recorded in the financ…
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A contingent liability whose chance of occurring is slight. Under ASC 450 (formerly SFAS 5), a remote contingency is neither recorded in the financial statements nor disclosed in the notes. The three likelihood categories for contingent liabilities are probable, reasonably possible, and remote.
Related Subjects
Part Of
- Contingent LiabilityThe broader contingency concept
Contrast
- Reasonably PossibleHigher likelihood contingency
- Probable and EstimableMust be recorded in financial statements
External Links
- Contingent liability — Wikipedia