Contingent Assets

Contingent assets are not assets proper but come into existence upon the happening of a certain event(s) or the expiry of certain time. If that event happens, the asset becomes available otherwise not e.g., sale agreement to acquire some property, hire purchase contracts, uncalled share capital of limited company. In some cases, circumstances at the balance sheet date may indicate the presence of certain rights or claims that could be converted into valuable assets depending upon the favorable result of certain events. In the absence of any legal right to the properties at that time, these properties are recognized only as contingent assets and are not usually entered in the accounts.

Accrued Assets

This classification is used for expenses paid in Advance (prepayments) and income earned but not received. 

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