Contingent Asset

Contingent Asset

An asset that a company may have or receive but only if a certain future event occurs. Usually, a contingent asset refers to the outcome of a lawsuit: that is, the company may be awarded a significant amount of money if it wins the lawsuit. Contingent assets are not ordinarily recorded on a balance sheet because of the uncertainty surrounding them. Their existence may or may not affect the company's share price. See also: Contingent Liability.