Contingent assets are the assets which are uncertain or may occurs in future events known as contingent assets.

contingent liabilities are the liabilities are the liabilities which were uncertain or may happen or occurs in future events known as contingent liabilities.

Contingent Asset:
A contingent asset is a potential economic benefit that depends on the occurrence of uncertain future events. It is a possible asset that may arise from past events but its existence is not confirmed yet. The realization of a contingent asset is not entirely within the control of the entity, as it is dependent on the outcome of a future event or circumstance that is not fully under its control. Contingent assets are recognized only when it is virtually certain that the economic benefits will flow to the entity and the asset's value can be measured reliably.

Contingent Liability:
A contingent liability is a potential obligation or present obligation that arises from past events but its existence is not confirmed yet. It is a possible liability that may or may not arise, depending on the outcome of uncertain future events. Contingent liabilities are recognized when there is a probable outflow of resources that will result in an obligation, and the amount can be reasonably estimated.

Examples of Contingent Assets:
- Lawsuit settlements: If a company is involved in a legal dispute and expects to receive a settlement, it would be considered a contingent asset until the settlement is finalized.
- Insurance claims: If a company has filed an insurance claim for a loss, the potential recovery from the insurance company would be a contingent asset until the claim is approved and paid.
- Potential tax refunds: If a company has filed a tax return and expects to receive a refund, it would be considered a contingent asset until the refund is received.
- Potential sale of assets: If a company has assets that are not actively listed for sale but might be sold in the future, the potential proceeds from the sale would be a contingent asset.

Examples of Contingent Liabilities:
- Lawsuits: If a company is being sued, it would have a contingent liability until the lawsuit is resolved.
- Guarantees: If a company has provided a guarantee for a third party's debt or performance, it would have a contingent liability if the third party fails to fulfill its obligations.
- Product warranties: If a company offers warranties on its products, it would have a contingent liability for potential future repairs or replacements.
- Environmental obligations: If a company is potentially responsible for environmental cleanup or remediation, it would have a contingent liability until the extent of the obligation is determined.

Recognition and Measurement:
- Contingent assets and liabilities are initially disclosed in the financial statements as notes unless the probability of inflow or outflow is remote.
- Contingent assets are recognized when it is virtually certain that the economic benefits will be obtained and the asset's value can be measured reliably.
- Contingent liabilities are recognized when there is a probable outflow of resources and the amount can be reasonably estimated.
- If the contingent asset or liability is not recognized, it is disclosed in the financial statements unless the probability of inflow or outflow is remote.

Conclusion:
Contingent assets and liabilities are potential economic benefits and obligations that may or may not arise, depending on uncertain future events. They are recognized and disclosed in the financial statements when certain criteria are met, ensuring transparency and providing relevant information to users of the financial statements.