What is capital commitments disclosure? - AskingLot.comCommitments and Contingencies.

A capital commitment is the projected capital expenditure a company will make over a period of time.The capital commitment may also refer to investments in blind pool funds by venture capital investors, which they contribute overtime when requested by the fund manager.

Are there commitments and contingencies?Contingencies are not the same as commitments.Depending on the outcome of the future event, the implied obligation is expected to take place.Contingency are obligations that may or may not become a liability to the company because of uncertainty of the future event.

A commitment is a degree of liability that an organization has to take on.The situation in the notes that accompany the financial statements may be disclosed depending on the accounting rules.

Financial commitment.At a future date, an undertaking to commit substantial expenditure.If the expense has not yet been incurred to have become an actual liability, it must be shown as such in the firm's balance sheet.