Definition of contingent
An event which may or may not happen; that which is unforeseen, undetermined, or dependent on something future; a contingency.
Examples of contingent in the following topics:
- Contingent Liabilities Contingent liabilities can be current or long-term.
- Contingent items are accrued if the claims and their likelihood of occurring are probable, and if the relevant amount of the liability can be reasonably estimated.
- Reasons to Refinance Debt A loan or other type of debt can be refinanced for various reasons: To take advantage of a better interest rate or loan terms (a reduced monthly payment or a reduced term) To consolidate other debt(s) into one loan (a potentially longer/shorter term contingent on interest rate differential and fees) To reduce the monthly repayment amount (often for a longer term, contingent on interest rate differential and fees) To reduce or alter risk (e.g. switching from a variable-rate to a fixed-rate loan) To free up cash (often for a longer term, contingent on interest rate differential and fees) Risks of Refinanced Debt Calculating the up-front, ongoing, and potentially variable transaction costs of refinancing is an important part of the decision on whether or not to refinance.
- Contingent Liabilities for Losses Loss contingencies can refer to contingent liabilities that may arise from discounted notes receivable, income tax disputes, or penalties that may be assessed because of some past action or failure of another party to pay a debt that a company has guaranteed.
- This usually relates to accounting methods used, changes in accounting estimates, contingent liabilities, performance of business segments, and any significant event subsequent to the end of the financial period.
- Notes to financial statements can include information on debt, going concern criteria, accounts, contingent liabilities, or contextual information explaining the financial numbers (e.g., to indicate a lawsuit).
- Items Included in the Financial Statement Notes Notes to financial statements can include information and supporting data on debt, going concern criteria, accounts, contingent liabilities, or contextual information explaining the financial numbers (for example, if the company is facing a lawsuit).
- There is no fixed dividend paid out to common stock holders and so their returns are uncertain, contingent on earnings, company reinvestment, and efficiency of the market to value and sell stock.