Contingent Liability means:
a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the enterprise; or
b) a present obligation that arises from past events but is not recognized 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; and includes
- letters of credit,
- letters of guarantee,
- bid bonds/performance bonds,
- advance payment guarantees and
- underwriting commitments.
