12.1 Contingent liabilities and assets

In line with the policies applied by the Group, consistent with IAS 37 Provisions, Contingent Liabilities and Contingent Asse ts, a contingent liability is understood as:

• a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or
• a present obligation that arises from past events but is not recognised in the financial statements beca:
  • it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligatio
  • the amount of the obligation cannot be measured with sufficient reliabili

Contingent liabilities are not recognised in the statement of financial position, however information on contingent liabilities is disclosed, unless the likelihood of the outflow of resources embodying economic benefits is negligible.

In accordance with the IFRS, the Group defines a contingent asset as a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Contingent receivables are not recognised in the statement of financial position, but information on them is disclosed if the inflow of resources embodying economic benefits is likely to occur.

Examples of contingent assets and liabilities include liabilities or receivables related to pending court disputes whose future impacts are neither known nor fully controlled by the entity. For more information on pending court disputes and other contingent liabilities, see Note 12.1.1 and Note 12.1.2, respectively.