A Contingent Asset arises when some past events have the potential to generate positive benefit streams at a future date or a situation where the business being valued can accrue some benefits at a future date when some underlying conditions materialise. In an instance where the business being valued has sued a third party and is expecting compensation, the amount is likely to be equivalent to the full amount of the claim. Such amounts are normally not included in the benefit stream relied on to derive the fair market value of the business. In instances where the evidence is so overwhelming in favour of the business being valued, the potential earnings or benefits from contingent assets are excluded from the benefits stream relied on to arrive at the conclusion of value because of the probability that the expected benefits will not materialise or the future date during which the benefits will be realised cannot be ascertained.