Write short notes on the following: (i) Accounting conventions. (ii) Contingent Asset and Contingent Liability

(i) Accounting conventions emerge out of accounting practices, commonly known as accounting principles, adopted by various organizations over a period of time. These conventions are derived by usage and practice. The accountancy bodies of the world may change any of the convention to improve the quality of accounting information. Accounting conventions need not have universal application. (ii) Contingent Asset An asset the existence, ownership or value of which may be known or determined only on the occurrence or non-occurrence of one or more uncertain future events. Contingent Liability An obligation relating to an existing condition or situation which may arise in future depending on the occurrence or non-occurrence of one or more uncertain future events.