Contingent liabilities (ETF 72)

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Australian System of Government Finance Statistics: Concepts, Sources and Methods
Reference period

Contingent liabilities (ETF 72) are defined in paragraph 7.251 of the IMF GFSM 2014 as obligations that do not arise unless a particular, discrete event(s) occurs in the future. The key difference between contingent liabilities and actual liabilities is that one or more conditions must be fulfilled before a financial transaction is recorded. Contingent liabilities are not recognised as liabilities prior to their associated condition(s) being fulfilled. Contingent liabilities are further discussed in Chapter 13 Part C of this manual. In GFS, contingent liabilities are further classified as:

  • Explicit contingent liabilities (ETF 721); and
  • Implicit contingent liabilities (ETF 722).
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