The comingling of legal and contingent liabilities exists under current GAAP accounting. Discuss potential problems this creates

Question:

The comingling of legal and contingent liabilities exists under current GAAP accounting.

Discuss potential problems this creates and propose alternatives to address them.

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...