Last week we put up a lengthy post addressing proposed new accounting disclosure rules that amount to yet another huge informational giveaway to the plaintiff’s bar. In drafting that post, we looked around the web, and we were, frankly, surprised by the lack of comment on the revised (but still awful) FASB proposal by the
FAS – 5: Heightened Corporate Disclosure No Longer Remote
Back in 2008 and 2009 we posted several times about the pendency of changes to FAS – 5 (that’s the “Financial Accounting Standards Board, Statement No. 5” for long), having to do with what companies must disclose publicly about ongoing “loss contingencies.” “Loss contingencies” include, among other things litigation. And litigation, of course, includes mass torts in which our clients are sued.
The problem with the proposed additional disclosure requirements, of course, was that they would affect the very litigation about which they reported – any similarity between FAS – 5 and the Heisenberg Uncertainty Principle being, we guess, “remote” (but knowing accountants, that statement may have to be qualified).
What effect could a bunch of boring accounting stuff have?…
Continue Reading FAS – 5: Heightened Corporate Disclosure No Longer Remote
FAS 5 Update: Report On FASB Roundtable
We’ve posted before about the Financial Accounting Standard Board’s proposal to revise how the accounting rules deal with loss contingencies, such as pending litigation.
The FASB held its roundtable regarding the proposal to revise FAS 5 on Friday, March 6. Although neither of your humble scribes attended that meeting, we’ve seen a report about that…
FAS 5 Update: Roundtable Meeting On March 6
We’ve posted before about the Financial Accounting Standard Board’s proposal to revise how the accounting rules deal with loss contingencies, such as pending litigation. (Our most recent post on that subject was back in December. An earlier post was here.)
FASB has now announced that its roundtable meeting on contingencies will take place…
Amending FAS 5 — An Update
The Financial Accounting Standards Advisory Council held a public meeting yesterday to discuss the proposed amendment to FAS 5, which deals with the disclosures that publicly traded companies must make about litigation. (We previously posted on that topic this summer.)
We’ve heard through the grapevine that FASB is now considering an alternative to…
The Effect of the Proposed Amendment to FAS 5 on Mass Torts
We haven’t yet said a peep about the FAS 5 brouhaha.
And, Lord knows, we haven’t had to.
In a nutshell, the Financial Accounting Standards Board has proposed to amend FASB Statement No. 5 to require companies to make additional disclosures about pending “loss contingencies,” which means making more public statements about pending litigation.