Which of the following is NOT required in contingent liability disclosure?

Contingent liability disclosures are important for helping users of financial statements understand potential future obligations that may arise from current conditions. In the context of these disclosures, certain elements are explicitly required.

Indication of uncertainties is essential because it allows financial statement users to appreciate the nature and extent of the uncertainties surrounding the potential liability. This transparency is crucial for assessing the risk involved.

Estimating the financial effect of a contingent liability is also necessary. Providing an estimate helps stakeholders understand potential impacts on future financial position and performance, which is fundamental in their decision-making processes.

A description of the nature of the contingent liability is required as it details the underlying events or circumstances that may lead to an outflow of resources. This description provides crucial context that assists users in assessing the probability and potential impact of the liability.

However, having a binding agreement with a third party is not a requirement for contingent liability disclosure. While such agreements might be relevant in some contexts, the essence of contingent liabilities is that they arise from uncertain future events - therefore, the nature of the liability doesn't depend on the presence of such agreements. Understanding the condition of uncertainty is central to the concept of contingent liabilities, and its absence makes the liability less impactful or not contingent at all.