Wednesday, July 23, 2008

FASB Proposes Improved Disclosure of Liabilities

Sanford Lewis, Counsel to the Investor Environmental Health Network discusses the proposal of FASB to modify financial statement liability disclosure obligations of corporations. He notes that FASB is missing an essential opportunity to require disclosure of issues that may SEVERELY impact a company in the long term (e.g. asbestos, Enron, subprime lending) but on which the management views such impacts as only "remotely probable". Given the tendency of companies to misjudge how unlikely an admittedly severe issue could be, IEHN is urging investors to join in asking FASB to ensure disclosure of these issues. (3:35)

Video in quicktime format

IEHN Action Alert regarding the FASB Proposal

News coverage at

FASB Exposure Draft on Accounting for Contingencies

FASB Accounting for Contingencies webpage

Investor Environmental Health Network