Contingent Liabilities: Issues and Practice
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Contingent liabilities have gained prominence in the analysis of public finance. Indeed, history is full of episodes in which the financial position of the public sector is substantially altered-or its true nature uncovered-as a result of government bailouts of financial or nonfinancial entities, in both the private and the public sector. The paper discusses theoretical and practical issues raised by contingent liabilities, including the rationale for taking them on, how to safeguard against the fiscal risks associated with them, how to account and budget for them, and how to disclose them. Country experiences are used to illustrate ways these issues are addressed in practice and challenges faced. The paper also points to good practices related to the mitigation, management and disclosure of risks from contingent liabilities.
Series:
Working Paper No. 2008/245
Subject:
Budget planning and preparation Contingent liabilities Financial statements Fiscal risks Insurance
English
Publication Date:
October 1, 2008
ISBN/ISSN:
9781451871036/1018-5941
Stock No:
WPIEA2008245
Pages:
60
Please address any questions about this title to publications@imf.org