Accruing a likely contingent liability is part of responsible earnings management. Although you aren't likely to find the term "earnings management" in an accounting dictionary, the American Institute ...

Many taxpayers have been able to reduce their taxes in transactions involving contingent liabilities, leading Congress to change subchapter C and the Treasury Department to change the regulations ...

Liabilities are what’s owed by an individual or a company. They are—in accounting terms—a company’s present obligations, originating from past transactions, through which economic benefits are ...