Contingent Liabilities

Another Accounting TimeBomb looks at contingent liabilities in today's post. The article defines a contingent liability as "a possible obligation depending on whether some uncertain future event occurs, or a present obligation but payment is not probable or the amount cannot be measured reliably."

The article points to contingent liabilities as a reason for the current credit problem facing the world today and states that investors should be aware of contingent liabilities before they invest in a company. Read the full article here.