potential liability

[pəˈtɛnʃəl laɪˈæbɪləti]
nounpl: potential liabilities
responsabilidade potencial
1. A possible or probable obligation or debt that may arise in the future, though not yet confirmed or legally established
The company disclosed potential liabilities from pending lawsuits in its financial statements.
A empresa divulgou responsabilidades potenciais de ações judiciais pendentes em suas demonstrações financeiras.
2. In accounting and finance, an obligation that may occur depending on the outcome of uncertain future events
Environmental cleanup costs represent a potential liability for the manufacturing facility.
Os custos de limpeza ambiental representam uma responsabilidade potencial para a instalação de manufatura.
3. A legal or financial risk that could result in monetary loss or obligation if certain circumstances materialize
The board must assess potential liabilities before approving the merger.
O conselho deve avaliar as responsabilidades potenciais antes de aprovar a fusão.
In both Brazilian and American corporate contexts, 'potential liability' is a critical term in financial disclosure and risk management. Brazilian companies, subject to IFRS standards, must clearly identify and disclose potential liabilities in financial statements. The term reflects the importance of transparency in corporate governance and is frequently discussed in boardrooms, audits, and legal reviews. American companies similarly use this term extensively in SEC filings and risk assessments.
Synonyms / Sinônimos
contingent liabilitypossible obligationprospective liabilityfuture debtuncertain obligation
Antonyms / Antônimos
confirmed liabilityactual liabilityassetcertain benefit

Regional Variations

General Brazilian
responsabilidade potencial
Standard financial and legal terminology used throughout Brazil
Rio de Janeiro
responsabilidade potencial / passivo contingente
Both terms widely used in financial sectors
São Paulo
responsabilidade potencial / obrigação condicional
Financial hub uses technical terminology; 'obrigação condicional' also common
Portugal
responsabilidade potencial / passivo contingente
Portuguese corporate accounting follows similar standards to Brazil; both terms used

Related Words

liabilitycontingencyrisk assessmentfinancial obligationbalance sheetaccrual accountingdisclosuredue diligence

Related Idioms & Phrases

time bomb liability
lurking liability
hidden exposure
on the hook for
contingent on future events
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