Public Company Adviser - March 2013: A “Roadmap” to Accrual and Disclosure Requirements under ASC 450

more+
less-

Of the types of information required to be disclosed by public companies, information about “contingencies” is often one of the more sensitive disclosures for the company and may be closely scrutinized by analysts and investors. Disclosure of pending lawsuits and government investigations also has the potential to impact an underlying proceeding, since adversaries may attempt to discern the company’s outlook and strategy from the disclosure. Concern over a company’s contingencies disclosure continues to grow given the nature of high stakes litigation, aggressive government enforcement initiatives, and the large loss contingency charges recorded during the financial crisis.

The Securities and Exchange Commission (“SEC”) and the Financial Accounting Standards Board (“FASB”) have focused on how public companies disclose their loss contingencies and they have explored the possibility of requiring additional contingencies disclosure. In this edition of the Public Company Advisor, we provide a helpful guide or “roadmap” to the basic tenets of a company’s obligation to accrue for and disclose loss contingencies. This roadmap focuses on the requirements under the accounting literature that often drive the most sensitive disclosures - - FASB Accounting Standards Codification Topic 450 (“ASC 450”) (formerly Financial Accounting Standards No. 5).

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

SEC

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×