Wize University Introduction to Financial Accounting Textbook > Current Liabilities
Uncertain Liabilities
Popular Courses
COMM 217
Concordia University
ACCT 2301
The University of Texas at Dallas
Intro to Financial Accounting
General Course
COMM 293
University of British Columbia
Intro to Financial Accounting
University Study Guides
MGCR 211
McGill University
ACCT 1220
University of Guelph
Intro to Financial Accounting
University Study Guides
ACCT 217
University of Calgary
ADMS 2500
York University
COMMERCE 1AA3
McMaster University
ACCTG 211
University of Alberta
ACC 100
Toronto Metropolitan University
COMM 111
Queen's University
ADM 1340
University of Ottawa
BU127
Wilfrid Laurier University
RSM219H1
University of Toronto
COMM 1101
Dalhousie University
AFM 101
University of Waterloo
BUS 251
Simon Fraser University
0:00 / 0:00
Uncertain Liabilities
An uncertain liability is a possible financial obligation that depends on other events or cannot be estimated accurately.
Provision
- Probability is certain
- Timing and amount are unknown, must be estimated reasonably
Contingent Liability
- Probability is uncertain
- Obligation depends on the outcome of another event. Examples
- Tax disputes
- Lawsuit
- Environmental damage
- Only disclosed in financial statement notes until they become probable (over 50% probability)
- Becomes a provision