Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
An obligation that may arise depending on a future event — tax disputes, guarantees, litigation.
Not on the balance sheet. If the total exceeds net worth, a material risk is hiding in a footnote.
An order by a tax officer determining the income or liability of an assessee for a period, and raising a demand where the officer disagrees with the return.
The first rung of a long ladder. First-authority demands are frequently reduced on appeal, which is why large ones sit in contingent liabilities rather than as provisions.