"implication of situation" is correct and usable in written English.
You could use it to refer to a certain consequence of an event or action, or a situation that could arise from a particular decision. For example, "The company's decision to cut costs had an immediate implication of situation in which employees had their hours reduced."
Best of all, Obvious Child is a deeply empathetic film that evidently cares more for the woman at its centre than the political implications of her situation.
Maura and Vicki check into a hotel after hotfooting it out of the festival, the former tentative and slightly confused about the implications of the situation.
In exploring the farcical implications of this situation, Ms. Holofcener goes deep into the ethical and emotional complications of modern middle-class adulthood.
To grasp the implications of this situation, society in general and the medical profession in particular was forced to rethink accepted notions about death itself.
The story, enacted by nonprofessional Mennonite actors from around the world, involves a married farmer who declares his love for another woman, but the melodramatic implications of the situation don't much concern Mr. Reygadas.
The ethical implications of this situation would be no different if you had sent the evaluation in an old-fashioned letter or wrapped it around a brick and hurled it through the provost's window (tempting but taboo).
Jim Hinkle Cummaquid, Mass., Sept. 2, 2008 To the Editor: It is important to note the deeper historical implications of the situation in Georgia, especially as relates to the precipitation of World War I. Germany and the Austro-Hungarian Empire comprised many of the countries that are now independent and part of the European Union.
Clearly, we were suffering from a very bad case of 'What have you done since we last spoke?' It didn't take me too long to cotton on to the long-term implications of this situation.
