bouchacha
Newbie
Joined: 21 Jul 2012
Online Status: Offline
Posts: 1
|
| Posted: 21 Jul 2012 at 11:58 | IP Logged
|
|
|
One of the requirements that falls under the penumbra of
contingency reporting is that you must also
charge/disclose unasserted litigation claims
should they meet the requirements. Normally, if your
enterprise is involved in litigation in which it is
probable it will result in a loss and reasonably
estimable at $x million, you must both charge the $x
million as well as disclose.
What I find odd about this requirement is the same
standard applies even to unasserted claims. This means
that if you estimate it as probable that a party is
going (but hasn't yet) to bring a claim against
you which will result in a loss, you must charge/disclose
depending on the circumstances. How exactly does this
work in real life? By disclosing that you think you're
going to get sued, doesn't that just encourage
litigation? Wouldn't enterprises therefore have an
incentive to keep quiet?
|
Active Topics 
Memberlist 
Search 
Help
Register 
Login
Topic: Contingencies for Unasserted Claims
Topic Closed)
