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What is the revenue destruction effect?
Contingent Assets
Possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of certain future events not wholly within the control of the company.
Constructive Obligation
An obligation that derives from an entity’s actions where: (a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities; and (b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.
Legal Obligation
A duty enforceable by law, deriving from statutes, contracts, or legal precedents.
Equitable Obligation
An obligation based on fairness, ethics, or natural law, rather than on a contractual or legal requirement.
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