Contingent Liabilities Balance Sheet. A potential or contingent liability that is both probable and the amount can be estimated is recorded as 1) an expense or loss on the income statement, and 2) a liability on the balance sheet. As a result, such documents outstanding at the balance sheet date are listed as contingent.
Also, what are examples of contingent liabilities? The contract or underlying principal amounts indicate the volume of business outstanding and do not represent amounts at risk. Contingent liability refers to those liabilities that can incur as an entity and depends on the outcomes of the pending lawsuit.
