Problem: The two basic requirements for the accrual of a loss contingency are supported by several basic concepts of accounting. Four of these concepts are periodicity (time periods), measurement, objectivity, and relevance.
Discuss how the two basic requirements for accrual of a loss contingency relate to the four concepts listed above.
An estimated loss from a loss contingency should be recorded by a charge to expense and a liability recorded. Estimated losses from loss contingencies are accrued as liabilities if:
(1) It is probable that a liability has been incurred, and (2) The amount of loss can be reasonably estimated.
This is part of the answer but I am confuse with how it relates to the concepts.
Reference: https://www.fasb.org/pdf/fas5.pdf