Learn Accounting Entries For Contingent Assets On Your Own:

The term "Contingent" means feasible, but not definite. Something unforeseeable or is subject to chance. A contingent asset is a benefit or is an asset that has a chance of being created on account of a gain that is contingent on future events that are not under an entity's control.

According to the accounting standards, unlike contingent liabilities and contingent losses, a business does not recognize contingent assets or gains and are not recorded in the balance sheet, even though they are probable and the amount can be estimated because of uncertainty in near future is called contingent asset.

Example:

The best example of such asset is a potential settlement from a Lawsuit. Only if the company wins the court case and gains from it, the contingent asset will actually be realized.