I’m aware of actuarial science, but what does that have to do with accounting? (We've been talking about liabilities as an accounting and contractual term, not as a remedy for injuries.)
Neither of these show up either on a balance sheet or cash flow statement. If a contingent liability is probable, you have to record it as a liability per GAAP.
Oh. Then what's the effect of the growing pile of unredeemed non-expiring gift vouchers that companies issue? Is there a little asterisk next to liabilities saying "but don't worry, we're sure we'll never have to pay this"?
Let me introduce you to actuarial science:
https://en.wikipedia.org/wiki/Actuarial_science
I’m aware of actuarial science, but what does that have to do with accounting? (We've been talking about liabilities as an accounting and contractual term, not as a remedy for injuries.)
Yes there is. See provisions and contingent liabilities.
Neither of these show up either on a balance sheet or cash flow statement. If a contingent liability is probable, you have to record it as a liability per GAAP.
Oh. Then what's the effect of the growing pile of unredeemed non-expiring gift vouchers that companies issue? Is there a little asterisk next to liabilities saying "but don't worry, we're sure we'll never have to pay this"?