Contingent liabilities are not recognised in the statement of financial position; unless the possibility of an outflow is remote, their nature and estimated effect are disclosed in the notes. Guarantees given and lawsuits with uncertain outcomes are common examples.
Source: TAS 37
Related terms
Provisions (TAS 37)Liabilities of uncertain timing or amount; recognised when there is a present obligation arising from a past event, an outflow of resources is probable and a reliable estimate can be made.Notes to the financial statementsDisclosures that explain the amounts in the financial statements, set out accounting policies and additional information, and form an integral part of the statements.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.
Last updated: October 22, 2026 · This definition is for general information only.