Australia Current or Contingent?

[Matt G]

Hi, I am a little confused as to whether or not the proceeds of a loan settling in 30 days is considered a current asset or a contingent asset?

 

[Matt G]

For the borrower that is.

 

[kirby]

A contingent asset is NOT recorded in the general ledger. An asset (current or non-current) is. So if the cash is NOT here yet it is not an asset. Depending on the facts and circumstances and definition, those future proceeds may not even qualify as a technical contingent asset.

 

[Fidget]

For the borrower that is.

For the borrower, a loan is always a liability and as this one is due to be settled in 30 days, it's a current liability.