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Deborah Haddad Joins Holland & Knight's Chicago Office

CHICAGO – Deborah T. Haddad has joined the firm's Chicago office as a partner in the Real Estate Transactions Group.

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Private Wealth Services: Alert - November 26, 2008

A tumultuous 2008 – marked by a financial crisis many economists consider to be the greatest since the 1930s – is rapidly coming to an end. As we approach year-end, taxpayers should remain focused on their personal income tax liability and those tax saving techniques that may alleviate the inevitable financial burden many associate with April 15. This alert covers recommendations for 2008 year-end tax planning and incorporates some new options resulting from the recent enactment of the EESA. Due consideration must also be given to many of Mr. Obama’s proposed tax changes (or some iterations thereof) that will likely be adopted in 2009 making the tax planning process even more challenging in 2008.

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Securities & Financial News to Note
Alert - June 16, 2008
 
In this Issue...
Proposed Accounting Rules Require More Detailed Disclosure About Future Loss
 
 June 16, 2008
 

The Financial Accounting Standards Board (FASB) proposed new rules, which were released for public comment on June 5, 2008, that would require companies to provide substantially more information about loss contingencies in their financial reports. The proposed rules would affect

FAS 5, Accounting for Contingencies, and would require companies to disclose “specific quantitative and qualitative information” about potential future losses. The new rules would also require increased disclosure under FAS 141, which applies following mergers and acquisitions. While pending lawsuits may be the most obvious potential liability, other corporate loss contingencies include collectability of receivables, risk of loss or damage to the company’s property through fire or hazards and other actual or possible claims or assessments against the company.

The current rules require companies to take a financial charge for a potential loss if it appears probable that the loss has occurred and the amount of the loss can be reasonably estimated. When these conditions are not met, companies must still disclose the loss contingency if there is a reasonable probability that the loss has occurred. In contrast, the new rules would require companies to disclose all loss contingencies unless the possibility is remote. Additionally, regardless of how remote, a company would be required to disclose all loss contingencies that are expected to be resolved within a year and could have a severe impact on the company’s financial position.

Specifically, the new rules would require companies to include a written description of the potential loss “including how it arose, its legal or contractual basis, its current status, and the anticipated timing of its resolution.” In addition to describing the potential loss, companies would be required to state the likely outcome, and, in the case of lawsuits, whether there could be treble or punitive damages. Companies would also have to provide a table of the loss contingencies and reconcile changes in the total amount from the beginning of the reporting period compared to the end.

http://fasb.org/draft/ed_contingencies.pdf

http://www.cfo.com/article.cfm/11525749?f=rsspage