Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

Get updates on Compliance Week offerings, including new features, databases, research, and other resources, along with announcements of upcoming Webcasts, conferences, seminars, CPE/CLE opportunities and more.

Published every Thursday, Compliance Week Europe offers a condensed summary of risk, audit, and compliance news either originating in Europe, or of special interest to European compliance professionals. This newsletter will follow developments by the European Commission, as well as those of national governments across the region, or any U.S.-based news that might have consequence across the Atlantic. Frequency: weekly; Thursday a.m.

A fresh edition of Compliance Week delivered via e-mail and online every Tuesday morning, relentlessly focused on the disclosure, reporting and compliance requirements of our 25,000+ paying subscribers.

Published every Friday, Compliance Weekend was launched at the behest of subscribers, and offers a quick Plain English review of the week's key developments. We hope you enjoy this supplement to Compliance Week's Tuesday edition.


Status message

Start your free, no obligation 10-day trial to continue exploring with full access.

Lawsuit Exposes Gaps in Loss Contingency Disclosures

Alix Stuart | December 18, 2012

When a Judge in Mexico ruled against Yahoo with a massive $2.7 billion judgment, the Internet company may have lost more than the case; it also lost some credibility on its financial reporting.

Yahoo announced in late November that it was facing the massive penalty as a result of lawsuit in Mexico it lost against a yellow pages listing service company. To be sure, companies win and lose lawsuits all the time, and Yahoo is unlikely to shell out anywhere near that figure, as it plans to “vigorously defend itself” during the appeals process. The real problem, however, was the fact that the case exposed holes in Yahoo's loss contingency disclosure policies.

Contingencies are unresolved issues, such as lawsuits or environmental clean-ups, which represent liabilities on the balance sheet. Companies are required to disclose in their financial statements when they are facing such possible liabilities and to state or estimate what the final cost will be if it can be... To get the full story, subscribe now.