A Pending Legal Case covers multiple situations such as pending trial, pending verdict, pending motion, or pending jury selection. In business valuation analysis, a pending legal case is of importance because it can impact the cash flow relied upon by the analyst to draw a valuation conclusion. In an instance where the business being valued has sued a third party, the full amount of the suit is not included in the computation of benefit stream. The expected benefits from a lawsuit constitutes a contingent asset (IAS 37) and even in instances where there is overwhelming evidence of compensation in favour of the business being valued, such potential benefits are normally excluded from the benefits stream relied on to arrive at the conclusion of value.