Consolidated financial statement of JSW S.A. Capital Group for 2012
2.20. Contingent items
Contingent assets are formed as a result of past events or events whose existence will be confirmed only at the time of occurrence or non-occurrence of one or more uncertain future events which are not fully in the company’s control, or They are assessed on an ongoing basis to make sure that they are properly reflected in the financial statements. If the impact of economic benefits becomes certain then this asset component is carried through revenues and recognized in the financial statements for the period in which the change occurred. Contingent assets are not recognized in the consolidated statement of financial position but disclosed in notes.
A contingent liability is:
a possible obligation that results from past events, whose existence will be confirmed only at the time of occurrence or non-occurrence of one or more uncertain future events which are not fully in the Group’s control, or
a current obligation which results from past events but is not recognized in the report because it is not probable that it will be necessary to spend funds comprising economic benefits to satisfy the obligation or the amount of the obligation (liability) cannot be sufficiently reliably valuated.
Contingent liabilities are not recognized in the consolidated statement of financial position but are disclosed in the notes, unless the probability of disbursement of funds embodying economic benefits is low.
