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    Contingent liabilities

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    Why do organizations need to account for contingent liabilities?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:07 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-liabilities/contingent-liabilities-14829

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    Contingent Liabilities
    <br>
    <br>This plan is a variation of Keyman assurance (an arrangement whereby an employer insures the life of a key employee for the purpose of recouping the loss that the employer would suffer in the event of the employee's death.).
    <br> It is designed to protect a company against the potentially disastrous effects of the death of a director/shareholder who has secured certain loans or credit facilities on behalf of the company and, in addition, protects the deceased ...

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