Respuesta :
Gain contingencies should be mentioned in the financial statement notes but not recognized in the income statement when they are reasonably likely to materialize and their magnitude can be anticipated.
When the outcome of future events could lead to a potential gain or advantage for an entity, there is a gain contingency. A contingency is an existing state, circumstance, or group of events that raises questions about potential gains or losses for an entity and that will be ultimately resolved whether one or more future events take place as planned or not. If it's not misleading, gain contingencies should be reported in the notes to the financial statements. Otherwise, only when the action can be recognized can potential gains be reported to the financial accounts. The potential gain from a gain contingency is not recorded in accounting since the exact amount is unknown.
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