Which type of liability is defined by both uncertain amount and uncertain timing of cash flows?

The concept being addressed in this question revolves around liabilities that possess both uncertain amounts and uncertain timing of cash flows. In financial terminology, this description typically refers to certain provisions or contingent liabilities, often associated with uncertain future cash outflows.

Type 4 liabilities are characterized by this dual uncertainty regarding both the timing and amount of cash flows. These liabilities can arise from various situations, such as pending lawsuits or warranties, where the company may have a future obligation, but the exact financial impact is not clearly defined at the present time.

In contrast, other types of liabilities in this context may have either a certain amount but uncertain timing, or a certain timing but uncertain amount, which does not fit the specific criteria highlighted in this question. Understanding these distinctions is crucial for financial reporting and analysis, particularly in terms of estimating potential risks and ensuring that financial statements accurately reflect obligations.