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Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of a future event such as a court case.
Schmalenbach is best known as a professor at the University of Cologne, and as a contributor to German language journals on the subjects of economics, and the emerging fields of Business Management and financial accounting.
The concept is incorporated in three provisions of Meir Tamari's proposed "Halakhic Corporate Code of Ethics" -- insider trading (even where permitted by secular law), product information and advertising, and fraudulent financial accounting reports.
Reconciliations between the two are typically required as a component of a Purchase price allocation in accordance with the Financial Accounting Standards Board's ("FASB") Statement of Financial Accounting Standards No. 141 “Business Combinations” (“SFAS 141”).