Prudential Regulation Authority Rulebook

7.1

A firm must recognise contingent liabilities, as defined in accordance with UK-adopted international accounting standards, that are material, as liabilities.

7.2

Contingent liabilities are material where information about the current or potential size or nature of those liabilities could influence the decision-making or judgement of the intended user of that information, including a supervisory authority.

7.3

The obligation to recognise material contingent liabilities in 7.1 applies irrespective of whether a liability is required to be recognised in accordance with UK-adopted international accounting standards.