Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
Examples of contingent liabilities Contingent liabilities are potential obligations that may arise in the future, depending on the outcome of a future event. Examples of contingent liabilities include: To visit https://www.mca.gov.in 1.Lawsuits or legal claims against the company 2.Product warranties or guarantees that may need to be honored in the future 3.Environmental liabilities, such as… Read More »
Contingent Liabilities Contingent liabilities can verify by reviewing the company’s financial statements and related disclosures. Companies are required to disclose significant that liabilities in their financial statements, along with a description of the nature of the liability and the likelihood of it being realized. The notes to the financial statements may also include information about… Read More »
