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A contingent asset is a potential economic benefit dependent solely on future events that can't be controlled by the company. Due to the uncertainty of the future events, these assets are not placed on the balance sheet. However, upon meeting certain conditions, contingent assets are reported in the financial statements in the accompanying notes.
Contingent Assets is a Assets which occurred on future event and result in entity can get the right of that asset or not like court case which arise in favor of entity or against this type of assets not recorded in books of account it's generation depend upon future action on which company has not sure about either may get it or not
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