Accounting rulemakers are poised to propose a new method for how companies disclose the possible cost of lawsuits—but rest easy, companies will have ample time to express their thoughts on the always controversial subject.
The Financial Accounting Standards Board is putting the finishing touches on its proposal, which would update Accounting Standards Codification Topic 450, Contingencies. Those contingencies could be any number of issues where a company might face some liability or gain in the future, but lawsuits have emerged as the most sensitive one: Investors want more advanced warning about their possible costs, while companies worry such disclosure might ...