An asset that may come into existence on a future date due to a specific past transaction/ event that is beyond the control of the reporting entity. Its existence is contingent on the future event’s occurrence. If the event comes into existence, the contingent asset will become a normal asset, and will be recognized accordingly. Otherwise, contingent assets are not recognized as normal assets. An entity has to report such asset in its disclosures when it is more likely than not that benefits will flow in once a contingent asset becomes a recognizable asset.