Uncertainties such as natural disasters are:
Not contingent liabilities because they are future events not
arising from past transactions or events.
Contingent liabilities because they are future events arising
from past transactions or events.
Disclosed because of their usefulness to financial
- Estimated liabilities because the amounts are uncertain.
- Reported in the same way as debt guarantees.
Option A is the answer
Natural disasters are not contingent liabilities as they cannot
be predicted or are not the future events which are the result of
past events or transactions