ACC, in Comments Letter to FASB, Continues to Voice Concerns on Proposals for Loss Contingency Reporting

ACC filed, on September 20, an addendum to its comments on proposed changes to the financial loss contingency disclosure rules with the Financial Accounting Standards Board (FASB) in order to add another 40 signatories. Including signatories on the August 18 ACC comments letter, now over 150 legal officers from a wide variety of companies have joined ACC in the comments letter. The latest proposed rules outlined in the FASB’s July 20 Exposure Draft, though slightly improved from those proposed in late 2007, if adopted, will spark additional litigation and prejudice litigation positions to the detriment of company and shareholder interests.

 

For further information:

ACC Addendum – Comments to FASB, filed September 20, 2010

ACC Comments to FASB, filed August 18, 2010

ACC Press Release regarding filed comments to FASB

FASB Exposure Draft, Proposed Accounting Standards Update : Disclosure of Certain Loss Contingencies, July 20, 2010

Corporate Counsel article re ACC Addendum to FASB, September 21, 2010

Financial Times article re ACC Comments, September 19, 2010

Corporate Counsel article re Comments to FASB, August 26, 2010

Compliance Weekly article on Proposal and Comments, August 19, 2010

U.S. Chamber of Commerce Comments to FASB

Links to prior FASB Loss Contingencies Proposals, ACC comments, and background