The Financial Accounting Standards Board has certainly been hearing an earful in recent days from a variety of organizations warning that the amendments it is proposing to two of its accounting statements could lead to a spate of lawsuits.
The rules involve accounting for loss contingencies. FASB has proposed that companies begin disclosing more information about pending or threatened litigation, even about litigation that has only a remote likelihood of causing financial losses at a company. Among the organizations that have weighed in so far with comments are the American Bar Association, the U.S. Chamber of Commerce, the American Institute of CPAs and Financial Executives International (see FASB Litigation Proposals Under Fire). Most recently, the New York State Society of CPAs contributed its own reactions. As of today, there are over 200 comments on FASB's Web site, many of them criticizing the proposals.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access