A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. In other words contingent asset is an asset whose timing or amount can not be reliably established
According to IAS 37 provision, contingent liabilities and contingent assets, contingent assets is not recognized in the financial statement but it is disclosed if the flow of economic benefits flowing to the entity due to the asset is probable. The benefit flowing to the entity is probable when the probability of it flowing to the entity is more than 50%.
When the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.