FASB Action Alert

The Financial Accounting Standards Board has issued proposals to improve disclosure of potential corporate liabilities. But it has missed the mark on one essential issue - the potential for severe long term risks that are misjudged by companies as only "remote." Attorney Sanford Lewis discusses the problem, and why investors need to weigh in before August 8.

Category:

News & Politics

Tags:

• FASB
• disclosure
• risk
• liability

[Gambeta81]

I think that FASB and IASB should approve a standard for contingencies disclosure that requires that financial statements had to inform all contingencies that are possible to be measure but issuers should only record the cases that are more likely than not of having an adverse resolution. This requirement has no addtional cost to the companies becuase finance and legal deparments ought to have that information.

[Mommaofsasha]

Thanks for taking on this issue. An area where it has affected many firms is the potential conncection between cel phones and brain tumors....where even intellectual property/publications are now drawn into suits. Very long time to resolution, if ever proven, but long time liablity reserves required.

[vzmarti]

Excellent. Good explanation and tackles the issue from several angles. Esp helpful for those of us who are accountants!