The existence of contingent liabilities is not always easy to determine as they are from different risk nature and their analysis requires a level of knowledge and expertise that is not always obtainable inside the company.
It is therefore a matter of conditions, situations or set of circumstances involving a certain degree of uncertainty that may result, due to the consummation of a future event, in the acquisition or loss of an asset or in the beginning or end of a liability that generally results in a profit or a loss.
Within contingent liabilities, we can find:
- Those that are of a repetitive nature and can be reasonably measured through experience or statistical probability: defaults, stock obsolescence, service guarantees, contributions linked to future events such as salaries or taxation, guarantees…
- Those that are of an isolated nature, in which at some given time, there are elements of judgements, estimations or opinions that allow the measurement of its most likely outcome within reasonable limits: litigations, taxation etc.
VALTECSA supports the discovery, measurement and enforcement of methods in order to avoid subsequent impacts. This highlights our financial-accounting experience on documentary reviews of those possible contingent liabilities linked to revisable, habitual and even one-off occurrences, as well as our ability to measure more technical and normative aspects, for example, in the measurement of environmental impacts and land restoration costs in the primary and secondary sectors.
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