PART C: CONTINGENT ASSETS AND LIABILITIES

Topic Notes IFRS Ref

3.8 Contingent assets a possible asset that arises from past events and whose existence will beIAS 37 p. 10
151
confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity

Rocignition and Disclosure not recognised in the SFP but are disclosed in the notes to the financial
statements. Disclosure: nature of the contingent asset and where
practicable estimate of financial effect
See Table 3.1 152

3.9 Contingent liabilities (a) a possible obligation that arises from past events and whose existenceIAS 37 p. 10
152
will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the entity

(b) a present obligation that arises from past events but is not recognised
because:
(i) it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; or
(ii) the amount of the obligation cannot be measured with sufficient
reliability
not recognised in the SFP but are disclosed in the notes to the financial
Rocignition and Disclosure
statements
See Table 3.2. 153
It is only when the probability of future sacrifice is higher than remote that
the contingent liability will be disclosed in the notes to FS
liability vs contingent to give rise to an obligation, CF requires the entity to have no practical 154
liabilities ability to avoid the obligation; Where the existence of a present obligation is
still unclear — and this will only be confirmed by the occurrence or non-
occurrence of some future event outside the control of the entity — a
possible obligation is identified and treated as a contingent liability