According to IAS37, a contingent asset is a possible asset that arises from past events , the existence of which will be confirmed................... by the occurrence or non-occurence of one or more uncertain future events not wholly within the control of the entity.
IAS 37 defines a contingent asset as a potential asset that may come into existence if certain future events occur. These events are uncertain and not solely within the control of the entity. The recognition of a contingent asset depends on the likelihood of those future events occurring. If it is probable that the asset will be received, then it should be recognized in the financial statements. Otherwise, it should only be disclosed in the notes to the financial statements.
