Where is a contingent liability presented in the financial statements?
In statement of changes in equity
In balance sheet as a current liability
In a note to the financial statements
In balance sheet as a non-current liability
A contingent liability is typically presented in a note to the financial statements. It is not shown as a separate item in the statement of changes in equity, nor is it classified as either a current or non-current liability on the balance sheet unless the likelihood of the obligation materializing is considered probable and the amount can be reliably measured. Therefore, the correct presentation is:
C. In a note to the financial statements
