Contingent Liabilities in the System of Accounting Objects: Issues of Disclosure

Abstract

The article examines theoretical and methodological issues related to the identification of contingent liabilities in the accounting system. Based on a comparative analysis of the criteria for recognizing actual liabilities, contingent liabilities, and provisions, the article explores various aspects of this topic. The imperfection of accounting standards and the complexity of applying international standards due to the lack of methodological guidance from regulatory authorities lead to unreliable disclosure of such information in financial statements. The study outlines a list of events that may serve as a basis for recognizing contingent liabilities in accounting and provides a detailed description of approaches to their assessment. The appropriateness of recognizing contingent liabilities to adhere to accounting principles is discussed. Analytical aspects of representing contingent liabilities, including their potential use for enhancing financial stability and effective enterprise management, are examined. The research highlights the differences between contingent liabilities and actual liabilities, such as accounts payable and provisions, in a comparative aspect. The feasibility of maintaining an extended analytical account of contingent liabilities by the expected maturity date after the balance sheet date and by the type of economic activity is substantiated. This will allow for assessing the impact of contingent liabilities on the financial condition of the enterprise and its performance. The justification and methodological approach to the identification and determination of contingent liabilities, which can serve as a basis for further research, are provided. The article expands the understanding and methods of using contingent liabilities in accounting and management. The research contributes to the development of accounting theory and practice and creates a foundation for further scientific research in developing recommendations for using contingent liabilities to improve enterprise resource management efficiency.